CHICAGO (June 29, 2022) - Crowe LLP, a leading public accounting, consulting and technology firm in the U.S. with offices around the world, today announced it has divested of three Crowe Tax Technology products - C-TRAC, K-1 Analyzer, K-1 Navigator – in a sale to K1X Inc., which is owned by Mudita Venture Partners and Geralyn Hurd, former Crowe Tax Technology partner. The financial terms of the deal will not be disclosed.
“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:
“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.”