Tax Computer Systems Ltd (TCSL) has been acquired by Tax Systems plc, an AIM listed company, managed by MXC Capital Ltd.
TCSL is the UK’s leading supplier of corporation tax software with a blue chip customer base of almost half of the FTSE100 and 19 of the top 20 UK accountancy firms. The products automate and simplify the complexity of tax compliance processes, interfacing with HMRC. The software is available as either an on premise or hosted solution and licences are provided on an annual or multiyear basis.
TCSL has been established for over 25 years and in 2015 had revenues of £12.8 million with 90% recurring revenues and a 52% EBITDA margin.
The purchase price was 11 times EBITDA plus the acquired cash on a pound for pound basis.
Gavin Lyons, partner at MXC Capital Ltd, has been appointed Executive Chairman of Tax Systems plc. There is the opportunity to invest further in the platform and team, accelerate organic growth and seek complementary acquisitions.
Rob Davies, Founder and Managing Director of Tax Computer Systems, said, “The Regent team, led by James Calvert, ran a highly effective, competitive process, delivering an excellent valuation together with a promising future for the business and the people who work in it.”
Regent Partners LLP acted as exclusive Corporate Finance advisor to Tax Computer Systems.