Accounting and tax-prep firm H&R Block is buying Wave Financial, an accounting, invoicing and receipt-tracking software company, for US$405 million (AU$583 million).
The deal is the first exit for the corporate venture capital arm of NAB which was launched three years ago.
In 2017, NAB Ventures led Wave’s AU$32 million Series D funding round which included the Royal Bank of Canada (RBC), Silicon Valley venture firms CRV and Social Capital, global funds OurCrowd and Harbourvest, as well as Canadian investors OMERS Ventures, BDC IT Venture Fund, BDC Capital and Portag3.
Headquartered in Toronto, Wave provides accounting, invoicing, payroll, and payments software solutions, as well as bookkeeping services, built into a platform that is used by over 400,000 small businesses every month.
When the deal closes, Wave will operate as an independent subsidiary from H&R Block with current CEO Kirk Simpson.
Managing Director, NAB Ventures, Melissa Widner also served as a Wave board observer.
“It’s been a privilege to work with CEO and Co-Founder Kirk, Peter and the team. This successful outcome is the result of over a decade of exceptional work and tenacity from the entire Wave team. NAB Ventures is delighted to have such a successful exit so early in our fund,” Widner said.
NAB’s executive general manager, digital and innovation, Jonathan Davey said: “We are thrilled with the signing of this agreement. Their success was built on the company’s ability to understand the needs of small business owners and to service them accordingly. This ‘early’ exit really speaks to the quality of the product offering and we couldn’t be more pleased with the outcome.”