Way2VAT’s move into Spain is the first step toward expansion into Latin American countries
VAT tech company Way2VAT has completed its acquisition of Spanish company DevoluIVA, providing the company with immediate access to the Spanish VAT recovery market.
Value added tax (VAT) fintech Way2VAT (ASX:W2V) has expanded its footprints in Europe after completing the 100% acquisition of Spanish company, DevoluIVA S.L.U.
The acquisition, announced first in July, provides Way2VAT immediate entry into the Spanish market and will be revenue accretive.
DevoluIVA developed Spain’s first fully digital solution for corporate expense and VAT (value added tax) recovery.
This solution provides automated management of corporate expenses and recovery of domestic VAT services through 60,000 users from a network of more than 130,000 merchants across Spain.
The DevoluIVA app also allows users to locate restaurants, taxis, petrol stations and car parks affiliated to the DevoluIVA network.
This enables the app users to automatically receive electronic invoices for using these professional expenses, which they can then use to claim as corporate expenses.
Meanwhile, Way2VAt will be able to complement DevoluIVA’s products by offering its own domestic and foreign VAT and accounts payable services.
Through this acquisition, W2V will also be able to expedite the rollout of its world’s first Smart Spend Debit Mastercard through an already established national network.
“We are pleased with the smooth transition of DevoluIVA and welcome its staff into Way2VAT,” says Way2VAT CEO and founder, Amos Simantov.
“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.”
Simantov also said the acquisition will essentially provide the basis for Way2VAT’s multi-product strategy beyond Spain, and into Latin American countries that have similar domestic VAT structures.
Simantov believes DevoluIVA has a strong alignment with W2V’s current operations, which will enable the merger to immediately add value.
“We operate in different markets, albeit with complementary products, and will be able to integrate each company’s expertise into each other’s offerings,” he said.
According to Simantov, DevoluIVA’s expertise on the unique characteristics of the Spanish domestic VAT system is the perfect way for W2V to offer its foreign VAT capability.
“It also provides a large market for our Smart Spend Debit Card that can be pushed through DevoluIVA’s national network,” he added.
Under the terms of the acquisition, Voxel Media, the vendor of DevoluIVA, is entitled to receive three earn-out payments at 12, 24 and 36 months after the acquisition completes.
These payments may be satisfied by the issue of shares, with such issues subject to shareholder approval.
Way2Vat believes that billions of dollars in Value Added Tax (VAT) go unclaimed each year by companies who do not understand how to recover VAT on their global corporate travel.
The company’s W2V platform is a web-based application that’s capable of reclaiming various types of VAT in more than 40 countries.
This article was developed in collaboration with Way2VAT, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.