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CCH BUYS SPEEDTAX

Mike SabbatisThe sales-and-use tax business in the mid-market has become more competitive this week with CCH's purchase of SpeedTax of Laguna Hills, Calif. No terms were announced and SpeedTax would hardly be material to the results of CCH's parent, Wolters Kluwer. CCH is keeping most SpeedTax employees, although CEO Anton Donde is going to be  getting the usual consulting job on the way out the door.

"We are taking on a number of their employees and their technology," said Mike Sabbatis, CEO and president of CCH, in an interview this week. "Our intent is to continue that investment." Initially, the product will be marketed as CCH SpeedTax, although Sabbatis said it's possible it would be "more closely branded" later. CCH markets its CorpSystem line to larger companies. SpeedTax appeared to be resource challenged and seemed to struggle after it hired former Sage executive David Lahey as its VP of sales and marketing in January 2010 and left in September that year. For the midmarket, it's essentially a two-horse race with the previous leader, Avalara, which has entered into integration agreements with about everyone you can think of. Sabbatis also cited the acquired company's CPA program and services. SpeedTax Pro is described as designed for CPA firms and SALT organizations.

 

 

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