KPMG LLP has acquired all of G2 FinTech’s U.S. tax software and intellectual property, including G2’s main product, TaxGopher.
G2 FinTech is a tax technology firm that specializes in tax analysis and compliance software for investment management. As part of the deal, the majority of G2’s development team will join KPMG’s Tax Transformation and Technology practice, allowing KPMG to beef up its business in helping hedge funds with their tax compliance needs.
Last year, KPMG built up that business with the acquisition of the accounting firm Rothstein Kass, which specialized in hedge fund clients. The acquisition also marks KPMG’s second in the tax technology space in under a year. In November, KPMG acquired the Global Trade Management Practice of EntryPoint Consulting LLC, enabling the firm to provide both regulatory and technology consulting to multinationals.
“This acquisition of G2’s technology assets and intellectual property continues to build on our successful leadership position in the Alternative Investment space following the Rothstein Kass transaction last year,” said Jeffrey C. LeSage, vice chairman of tax at KPMG, in a statement. “The market is demanding a web-based, integrated technology platform; by adding G2’s technology, KPMG will now be able to offer hedge funds a seamless end-to-end analysis and compliance solution.”
KPMG is making a major investment in tax technology by developing KPMG Link PartnerTrack, the firm’s next-generation web-based system for streamlining the partnership tax return and reporting process.
Financial terms of the deal were not disclosed. KPMG ranked fourth on Accounting Today's 2015 list of the Top 100 Firms, with $6.87 billion in annual revenue.
“This opportunity presents the best of both worlds for G2 and our clients,” said G2 FinTech CEO George Michaels. “Our ongoing arrangement with KPMG enables us to service our existing clients while at the same time allows KPMG to incorporate TaxGopher within its KPMG Link PartnerTrack platform. We see this as a huge win for everyone.”
