TaxBit, a crypto tax and accounting software provider, has acquired rival Tactic to expand its offerings.
The acquisition, TaxBit's first, will help expand its existing corporate accounting offering, the company announced on Tuesday. Terms of the deal weren't disclosed, but Tactic has raised over $13 million in total funding to date, its founder and CEO Ann Jaskiw told The Block. As part of the deal, Jaskiw will join TaxBit as a member of its leadership team, she added.
Crypto tax and accounting compliance are in the spotlight more than ever amid recent high-profile crypto collapses, including FTX and Celsius. "Enterprises and governments need robust software solutions," TaxBit co-founder and CEO Austin Woodward told The Block. "We view 2023 as a time to build, and with the changing macro landscape, more opportunities for strategic acquisitions will come to light over the next 12+ months."
TaxBit was founded in 2018 and provides a single system of record for crypto tax and accounting. Tactic, on the other hand, was launched in 2021 to help companies stay on top of their accounting practices. The full integration of Tactic’s software and team with TaxBit will take place over the coming months, said Woodward.
There are currently 13 people working for Tactic and all of them will be joining TaxBit as full-time employees, Jaskiw said. TaxBit's current headcount, on the other hand, is over 250, according to Woodward. He said the deal will help TaxBit expand in New York as Tactic is based in the city.
TaxBit is backed by high-profile investors, including Paradigm and Coinbase Ventures, having raised over $235 million in total funding to date. It was valued at $1.33 billion in August 2021. Woodward said "we are fortunate to be in a strong cash position" and having "experienced exponential growth" since 2021. "We continue to see great demand and opportunity even during a bear market," he added.
Looking ahead, TaxBit is planning for a global expansion across its enterprise and government verticals, said Woodward.
Law firms Goodwin Procter and Gunderson Dettmer helped with the deal, said Woodward.
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