H&R Block acquires Wave Financial for $398m
H&R Block, a tax preparation company, is acquiring Wave Financial, a free invoicing and accounting software, for CA$537 million ($398 million).
Wave started in 2010 in Toronto, with a focus on simplifying the lives of small business owners. According to the firm, Wave has more than 200 employees and serves more than three million entrepreneurs and freelancers around the world.
“But this isn’t the end – it is the start of an exciting new chapter,” says Kirk Simpson, co-founder and CEO.
The start-up’s last financing round was in May 2017, when it raised CA$32 million from National Australia Bank, RBC, Exhibition Capital, and Portag3.
Wave also acquired Every, a Toronto-based fintech that provides business accounts and debit cards to SMEs, in March this year.
H&R Block reports over 23 million tax returns which are prepared by them or go through them annually. Many of its customers are entrepreneurs that are working with a trusted H&R Block tax professional.
“H&R Block and Wave have a shared vision of serving small business – we will continue to operate as before, including our brand, our products and our pricing. We will also continue to operate from our headquarters in Toronto and of course, the team and I will remain committed (and obsessively focused) for years to come on this important journey,” adds Simpson.
The acquisition expands H&R Block’s product and client portfolio with Wave’s accounting. However, it is still subject to regulatory approval and closing conditions.