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ADP SELLS TAXWARE

ADP logoAutomatic Data Processing has left the sales tax software business via the sale of TaxWare to Vista Equity Partners. Terms were not disclosed, but some might want to make some calculations based on ADP's report of TaxWare's results as discontinued operations.
For the three months ended September 30, TaxWare had $12.9 million in revenue, compared to $11.6 million in last year's corresponding period. Net earnings for the most recently ended period were $2.8 million, up from $2.3 million a year earlier. Annualize the top line by multiplying by four and that gives revenue of $52 million. ADP purchased TaxWare from First Data in 2006 for about $125 million. Since First Data recognized a gain on the sale of about $43 million, it might be possible for some observers to make some conclusions about price multiples and how much ADP got. I'm guessing ADP did not make much if any money on this deal. It marks the latest evidence that about the only company doing well in sales-and-use tax software. CCH purchased the former SpeedTax in July 211 and that operation seems to have disappeared into a black hole.
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