NextPoint Financial Inc. an all-inclusive financial services destination providing tax services, loans and other solutions for underserved consumers and small businesses, announced today that it has completed the acquisition of Chicago-based Community Tax LLC, (“Community Tax”), a fast-growing leader in tax debt resolution and other tax-related services for approximately US$90 million in cash and stock, subject to certain closing adjustments. The transaction is expected to be accretive to NextPoint’s 2022 earnings.
The purchase was funded with US$70 million in borrowings under a new credit facility entered into by a newly formed subsidiary of NextPoint which holds all the equity interests of Community Tax. NextPoint also issued the equivalent of US$20 million of NextPoint common shares, priced at US$4.6881 per share, to the former owners of Community Tax.
Founded in 2010, Community Tax quickly emerged as a leader in the tax debt resolution industry by leveraging a two-phased approach to resolving delinquent tax problems. Community Tax is a bilingual organization, with both English and Spanish speaking team members across every organizational discipline. Community Tax has offices in Chicago, Jacksonville, and Puerto Rico. Jacob Dayan, Esq., Co-Founder and CEO of Community Tax, has joined NextPoint as Chief Revenue Officer and will be responsible for monetization strategies across the Company.
Brent Turner, CEO of NextPoint commented, “Community Tax is a perfect complement to the NextPoint platform and meets the needs of our customers. Early in 2021, we began offering their tax resolution services to Liberty Tax customers via our franchisees. The program was well received and ultimately led to today’s purchase which positions us as one of the largest tax debt settlement companies in the U.S. We are now focused on the integration of the businesses and developing plans to support the rapid acceleration of the Community Tax business within the broader NextPoint financial services marketplace.”