H&R Block announced today that they have entered into an agreement to acquire Toronto-based accounting software firm Wave.
Under the terms of the agreement, H&R Block will acquire all outstanding shares of Wave for USD $405 million cash. The transaction is expected to close in the next few months, subject to regulatory approval and customary closing conditions.
Founded in 2010 by Kirk Simpson and James Lochrie, Wave provides accounting, invoicing, payroll and payments software on its platform used by more than 400,000 small businesses each month.
H&R Block says the acquisition expands the its product and client portfolio and enhances its position in the small business sector.
Under the terms of the agreement, it will acquire all outstanding shares of Wave for US$405 million or roughly $537 million in cash.
After the deal is complete, Wave will maintain its leadership team and will operate independently within H&R Block from its headquarters in Toronto.