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Monday, May 23, 2022

BlackLine Acquires Intercompany Accounting Software Firm FourQ

BlackLine has completed the acquisition of FourQ Systems for $165 million in a bid to enhance its existing intercompany accounting automation capabilities, the company announced .

The deal also included an earnout consideration of up to $75 million across the span of three years, subject to financial performance milestones.

The Woodland Hills-based accounting software company said the acquisition will allow BlackLine to drive end-to-end automation of traditionally manual intercompany accounting processes, according to a statement. FourQ’s software is designed for companies with overseas operations or subsidiaries that need to coordinate their books.

“Intercompany accounting is one of the biggest distractions for finance and accounting for multinational corporations,” Marc Huffman, BlackLine’s chief executive, said in a statement. “Hard to believe, but most companies are still using legacy, repetitive and manual processes to manage intercompany, exposing their businesses to unnecessary costs, significant compliance risks, and missed working capital and tax opportunities.”

BlackLine funded the transaction with existing cash on-hand. Further acquisition details will be shared in conjunction with BlackLine’s fourth quarter and year-end earnings conference call on Feb. 10, the company said.

Shares of BlackLine (BL) closed Friday up $4.30, or 5.2 percent, to $86.88 on the Nasdaq Friday, a day when the market closed up more than 3 percent.

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