Kirk Simpson (Twitter)
Special Report

Breaking down the $537-million H&R Block acquisition of Toronto fintech Wave

What’s new: Tax services giant H&R Block has entered into an agreement to buy Wave Financial, a digital accounting services firm with over 400,000 small business clients, for $537 million (US$405 million) in cash.

What’s in it for H&R Block: New revenue streams. Kansas City, Mo.-based H&R Block processed 23 million tax returns in fiscal 2019, bringing in $3.1 billion in revenue. Wave offers a suite of products for small businesses, including payroll, invoicing, bookkeeping and credit card processing. This will allow H&R Block to compete with banks and accounting firms, while offering complementary accounting products like Intuit—which makes QuickBooks and TurboTax, software for bookkeeping and tax filing, respectively—does.

What’s in it for Wave: Access to H&R Block’s customer base and global scale. Wave has about 260 employees, nearly all in Toronto. H&R Block has 70,000 tax professionals and 11,000 retail tax offices in the U.S., Canada, Australia and India. Adding that service helps Wave address a long-standing concern for its customer base. “If you’re a small-business owner, when tax is due, you’ve got weeks of stress, generally, to make sure that you’re in good shape,” Kirk Simpson, Wave co-founder and CEO, told The Logic shortly after the term sheet was signed.

    Enter your email to read this article for free

    By entering your e-mail you consent to receiving commercial electronic messages from The Logic Inc. containing news, updates, offers or promotions about The Logic Inc.’s products and services. You can withdraw your consent at anytime. Please refer to our privacy policy or contact us for more details.
    Already a subscriber?

    In-depth, agenda-setting reporting

    Great journalism delivered straight to your inbox.

    Briefing

    BenchSci raises $63M Series C led by Inovia, TCV

    B2B fintech Zafin buys analytics firm Fincad

    Ontario stands alone as Nunavut signs child-care deal with Ottawa

    Best business newsletter in Canada

    Get up to speed in minutes with insights and analysis on the most important stories of the day, every weekday.

    Exclusive events

    See the bigger picture with reporters and industry experts in subscriber-exclusive events.

    Membership in The Logic Council

    Membership provides access to our popular Slack channel, participation in subscriber surveys and invitations to exclusive events with our journalists and special guests.

    Canada's most influential executives and policymakers are reading The Logic

    • CPP Investments
    • Sun Life Financial
    • C100
    • Amazon
    • Telus
    • Mastercard
    • bdc
    • Shopify
    • Rogers
    • RBC
    • General Motors
    • MaRS
    • Government of Canada
    • Uber
    • Loblaw Companies Limited