Nasdaq-listed indirect tax solutions provider Vertex has commenced a public tender offer to take over e-invoicing company Pagero Group in a deal worth nearly $555m.

Vertex is offering SEK36 ($3.5) in cash to acquire each of the shares of Pagero. This represents a premium of about 71.4% to Pagero’s closing price on 12 December 2023.

The independent bid committee of Pagero’s board of directors has unanimously advised the company’s shareholders to accept the public offer extended by Vertex.

Based in Sweden, Pagero provides solutions to automate e-invoicing compliance through its business network that connects buyers and sellers.

Pagero CEO Bengt Nilsson, who is also the company’s second largest shareholder, said: “Vertex has been a great partner in Pagero’s work to address pressing customer needs for best-in-class tax compliance solutions.

“With the rapid emergence of new and proposed e-invoicing mandates and the digitisation of indirect tax, e-invoicing has quickly become a necessity for businesses trading in multiple global jurisdictions.”

Through the acquisition of Pagero, Vertex will expedite the companies’ partnership announced in October 2023.

The partnership is aimed at offering multinational companies an end-to-end solution to automate business transactions as well as to manage indirect tax, reporting and e-invoicing compliance across the globe.

Vertex also intends to develop an integrated, end-to-end compliance platform that merges indirect tax, periodic filing, reporting, and e-invoicing, incorporating a scalable, open business network.

The platform is expected to allow ongoing compliance and operational efficiencies throughout the procure-to-pay and order-to-cash processes.

Vertex CEO David DeStefano said: “Vertex and Pagero have a shared vision to accelerate global commerce and help companies automate and digitise their compliance operations.

“Since the launch of our commercial partnership, we have seen strong reception from customers and partners. E-invoicing has become one of the fastest growing challenges facing our global enterprise customers, making this transaction a logical next step.”

By utilising Pagero’s platform and global network, Vertex aims to extend its leadership by incorporating new digital transformation and e-invoicing capabilities into its portfolio.

Besides, the combined platform will help customers to easily facilitate the creation, exchange, and clearance of jurisdictionally-compliant e-invoices.

It will also enable companies to eliminate friction and other hurdles to geographic expansion and to enhance efficiency of their compliance and reporting operations.

Vertex’ offer is conditional upon certain regulatory approvals and the receipt of valid tenders of over 90% of Pagero’s shares and customary conditions.

Once unconditional, the settlement is expected to start on or around 1 February 2024.