Way2VAT Ltd (ASX:W2V) has completed the acquisition of DevoluIVA S.L.U., Spain's first fully digital solution for corporate expense and VAT recovery.
The company’s shares were trading about 14% higher intra-day, at 4 cents, following the completion of the revenue accretive acquisition.
The acquisition provides Way2VAT entry into the Spanish market, offering complementary domestic and foreign VAT and accounts payable services and supporting the rollout of the world's first Smart Spend Debit Mastercard (NYSE:MA) through an established national network.
Way2VAT has issued 11,704,463 fully paid ordinary shares in the company to the vendors as completion consideration for the acquisition, valued at A$468178.52 based on Way2VAT’s last traded share price.
“Multi-product strategy beyond Spain”
Way2VAT CEO and founder Amos Simantov said: “We are pleased with the smooth transition of DevoluIVA and welcome its staff into Way2VAT.
“The acquisition is aligned with our long-term strategy of growth through various paths that we outlined at the IPO, including the acquisition of companies complementary to Way2VAT's business.
“The acquisition provides the basis for our multi-product strategy beyond Spain and into Latin America countries with similar domestic VAT structures.
“There is a strong alignment with our current operations that will immediately add value.”
Network of more than 130,000 merchants
DevoluIVA provides automated management of corporate expenses and automatic recovery of domestic VAT services through 60,000 users and a network of more than 130,000 merchants across Spain.
The DevoluIVA app allows users to locate restaurants, taxis, petrol stations and car parks affiliated to the DevoluIVA network and automatically receive electronic invoices for their professional expenses.
Simantov added: “We operate in different markets, albeit with complementary products, and will be able to integrate each company’s expertise into each other’s offerings.
“DevoluIVA’s expertise on the unique characteristics of the Spanish domestic VAT system is the perfect way for us to then offer our foreign VAT capability.
“It also provides a large market for our Smart Spend Debit Card that can be pushed through DevoluIVA's national network."