Community Tax acquired by NextPoint Financial in US$90 million deal

1 minute read
31 December 2021

On December 31, 2021, NextPoint Financial Inc. (TSX: NPF.U) (OTC Pink: NACQF) announced that it had acquired Community Tax LLC for approximately US$90 million in cash and stock, subject to certain closing adjustments.

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 to the former owners of Community Tax.

Chicago-based Community Tax is a fast-growing leader in tax debt resolution and other tax-related services. NextPoint is an all-inclusive financial services destination providing tax services, loans and other solutions for underserved consumers and small businesses.

Gowling WLG was Canadian counsel to Community Tax in this acquisition with a team that included Cyndi Laval, James Stewart and student-at-law Danny Long (corporate); and Anita Yuk (tax).

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