Global fintech company Way2VAT is planning to accelerate its growth and expedite profitability with the $4 million acquisition of UK-based VAT advisory and compliance specialist RBC VAT in a deal advised by GS Verde Group.

The deal will allow Way2VAT to combine additional expertise and resources with its unique artificial-intelligence technology — including its automated payables and invoice compliance platform — to benefit existing and future clients. Consideration will comprise $2m in cash on completion of the acquisition plus $1.76m payable 12 months later and an additional $240,000 at 24 months.

‘Four-Pillar’ Growth Strategy Way2VAT chief executive officer Amos Simantov said the acquisition was a significant milestone that directly supported the company’s “four pillar” growth strategy.“We have been working toward this goal for the last six months and it is a key part of our roll-up strategy,” he said. “This is the second company we have acquired and we intend to pursue similar acquisitions to strengthen our offerings and continue driving up to 50% year-on-year organic growth from our client base.”Founded in 2003, RBC VAT employs VAT (value-added tax) experts with extensive experience in UK and European VAT regulations for top-tier clients in the US, Europe, and the Asia-Pacific region. The company’s services include providing multi-national firms with global business-led VAT advice, conducting bespoke VAT training courses, and advising international businesses on VAT planning and European VAT compliance filings. Complementary Acquisition “There are significant up-sell and cross-sell opportunities that exist between our client bases across the US, UK, and EU in VAT advisory and automated processing,” Mr Simantov said, in explaining why he believes the acquisition will be complementary to both businesses. “RBC VAT will contribute in-house consulting capabilities and around 80 global customers, which will see our combined numbers grow to more than 500 clients—we expect this will accelerate our path to achieving cash flow positive performance in 2026.” He said the fragmented European market could potentially offer new acquisition opportunities to achieve further growth.

Way2VAT will fund the acquisition with a $4.1m share placement, issuing 512.5 million shares at $0.008 over two tranches of $3.39m and $705,000, and has also secured a $1m debt facility with Israel’s Bank Hapoalim. The loan will be for an 18-month term and secured against RBC VAT shares.

“Thanks GS Verde Group for all your hard work and efforts put into guiding us through this transaction. We have really appreciated your support and insight throughout!”
— Ryan Bevan Director, VAT Compliance Services at RBC VAT Limited

Source:Trading View