Vertex snaps up e-invoicing specialist ecosio for $180 million

Concept image showing two people shaking hands symbolizing a deal.
(Image credit: Getty Images)

Vertex has completed the acquisition of ecosio, a B2B integration provider that specializes in electronic data interchange (EDI) and e-invoicing, for $180 million.

Founded in 2012, ecosio implements automated B2B communication with customers, suppliers, and authorities to provide flexible EDI and electronic invoicing services as a single solution.

Headquartered in Munich, Germany, the firm also has offices in London and Vienna and serves customers across a wide range of industries.

As a global provider of indirect tax solutions, Vertex offers software that can be tailored to specific industries for key facets of indirect tax – including sales and consumer use, value added, as well as payroll.

In an announcement confirming the acquisition, Vertex said it will integrate ecosio’s offering into its own indirect tax software platform to bolster its e-invoicing capabilities and help drive the company’s growth strategy.

“We welcome the ecosio team to the Vertex family,” said David DeStefano, CEO of Vertex. “E-invoicing is going to change the way international companies handle Value Added Tax compliance and reporting.

“By integrating ecosio’s e-invoicing capabilities together with Vertex’s leading indirect tax software platform, we’re delivering a comprehensive tax technology solution that addresses the increasingly complex regulatory landscape faced by our customers worldwide.”

Completed as of August 30, 2024, the acquisition includes an upfront cash payment of $69 million, as well as a targeted earn-out of $76 million in cash and $35 million of Vertex shares.

Vertex said its initial purchase price was funded by the company with cash on hand and represents a five times revenue multiple based on ecosio’s current revenue run rate.

Looking ahead, if ecosio achieves its financial targets and earn-outs over the next three years, the terminal multiple will also be approximately five times revenue, the firm added.

Vertex is expected to provide investors with further details surrounding the financial impact of the purchase alongside its Q3 2024 financial results in November.

Commenting on the acquisition, ecosio managing director, Christoph Ebm, said joining Vertex was “the next logical step” in the company’s growth and development.

“Together, we will help our customers simplify indirect tax compliance and streamline complex Continuous Transaction Controls as well as B2B integration requirements while expanding our addressable market,” he said.

Daniel Todd

Dan is a freelance writer and regular contributor to ChannelPro, covering the latest news stories across the IT, technology, and channel landscapes. Topics regularly cover cloud technologies, cyber security, software and operating system guides, and the latest mergers and acquisitions.

A journalism graduate from Leeds Beckett University, he combines a passion for the written word with a keen interest in the latest technology and its influence in an increasingly connected world.

He started writing for ChannelPro back in 2016, focusing on a mixture of news and technology guides, before becoming a regular contributor to ITPro. Elsewhere, he has previously written news and features across a range of other topics, including sport, music, and general news.

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