"At Crowe, we thrive on our ability to identify client needs in this highly-complex tax landscape and build technology-enabled solutions to address those needs," said Niki Bencik, Crowe Tax managing partner. "C-TRAC, K-1 Analyzer, and K-1 Navigator are clear manifestations of that Crowe mindset, and we've built innovative solutions that are of interest to the venture investment community. We have incubated and grown this suite of solutions, and view this as a good moment in time to sell these assets to a company that will make the needed investments to scale the solutions further while allowing us to continue investing in other areas to bring innovative solutions to our clients."
The suite of tax technology solutions K1X Inc. has purchased includes:
- C-TRAC suite: the only IRS-approved software solution that is designed to help not-for-profits efficiently tackle aspects of tax compliance. It is patent-pending technology that can reduce the time and cost of tax compliance, information data gathering, and organizational management.
- K-1 Analyzer: suite of digital products, designed to streamline the K-1 aggregation process.
- K-1 Navigator: a powerful solution combining considerable Schedule K-1 knowledge with advanced automation and analytics technology resulting in a product that can help entities produce K-1 packets quickly and accurately.
"I'm proud of what we were able to build and incubate at Crowe with these technologies, and I'm excited to move forward in expanding these capabilities and aggressively bringing them to market in my new role," said Geralyn Hurd, president of K1X Inc. "We have a strong team that is dedicated to scaling these solutions in a market that is demanding stronger digital tools to solve complex problems."
Along with purchasing the Crowe technology assets, K1X Inc. will offer employment to the approximately 40 Crowe tax technology professionals who work on and are responsible for programming the C-TRAC, K-1 Analyzer, and K-1 Navigator products. The full transition will be substantially complete by the end of this year.
Bencik added: "As part of the agreement, Crowe will maintain a licensing agreement with K1X Inc. to continue using the tools to provide important tax services to our clients."
"We saw an opportunity here to invest in a suite of products with strong potential and a passionate leader behind it," said Ethan Linkner, managing partner, Mudita Venture Partners. "With K1X, we have proven, established technology solutions with a clear and extensive use-case. Couple that with a good runway for growth and it creates a recipe for a solid business and return on investment."
About Crowe
Crowe LLP is a leading public accounting, consulting and technology firm with offices around the world. Crowe uses its deep industry expertise to provide audit services to public and private entities. The firm and its subsidiaries also help clients make smart decisions that lead to lasting value with its tax, advisory and consulting services. Crowe is recognized by many organizations as one of the best places to work in the U.S. As an independent member of Crowe Global, one of the largest global accounting networks in the world, Crowe serves clients worldwide. The network consists of more than 200 independent accounting and advisory services firms in more than 130 countries around the world.
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SOURCE Crowe LLP
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