ADP pays First Data $125m for Taxware

Source: ADP

ADP Employer Services, a division of Automatic Data Processing, Inc. (NYSE:ADP), a leader in HR, payroll and benefit administration solutions, and First Data Corp. (NYSE:FDC), a global leader in electronic transactions and payments, today announced the two companies have entered into a definitive agreement for ADP to acquire Taxware, LP for approximately $125 million in cash.

By acquiring Taxware, a leading provider of tax content and compliance solutions for Sales, Use and Value Added Tax, ADP will further expand its suite of tax & financial services offerings, for mid-size, large and global organizations.

"We are well-positioned to enter this business segment and with the acquisition of Taxware, we can help our Employer and Dealer Services clients who require an end-to-end Sales & Use Tax solution," said Laurie Eldridge, Senior Vice President & General Manager, ADP Tax & Financial Services. "Today, ADP provides payroll tax compliance and money movement services for over 500,000 clients, including many Fortune 100 companies. This year, ADP will collect and move over $1 trillion in tax, direct deposit and related funds for its clients. When you combine ADP's expertise, brand and distribution channels with Taxware's market leading capabilities and solid business model, we have a valuable solution to help meet the needs of large and mid-sized companies, domestically and internationally."

Taxware, a part of First Data since 2001, is an industry leader focused exclusively on global commercial tax compliance systems. For more than 25 years, Taxware's products have simplified the tax calculation and compliance process with solutions for sales, use, value added and other consumption taxes for businesses around the globe.

"Taxware has been a strong performer for First Data's Government Solutions unit, doubling in size over the last five years. ADP presented a powerful strategy for even stronger growth in the future that will provide a great opportunity for Taxware employees and customers, and we wish Taxware much continued success," said David Treinen, executive vice president, First Data Corp. "First Data will continue to focus on its core strengths in transaction and payment processing for merchants and financial institutions," Treinen added.

Taxware is an operating subsidiary of First Data Government Solutions, jointly owned by First Data, which owns approximately 75 percent, and its strategic partner, iFormation Group, which has about a 25 percent equity interest. iFormation Group was formed by The Boston Consulting Group Inc., General Atlantic LLC, and The Goldman Sachs Group.

The acquisition is subject to regulatory reviews and other customary closing conditions. It is expected to close by the end of this calendar year.

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