AMSTERDAM: Wolters Kluwer N.V. is on the hunt for acquisitions in the U.S. following the federal tax overhaul, according to the company’s finance chief. We continue to evaluate smaller bolt-on acquisitions to strengthen our portfolio,” Chief Financial Officer Kevin B. Entricken Thursday said in an interview with CFO Journal. “If these [targets] are in the U.S., that does help,” he added.
The drop in the U.S. corporate tax rate to 21% from 35% is making investments in the country more attractive, Mr. Entricken said. This “is good for a company like us,” Mr. Entricken said.
Wolters Kluwer’s global effective tax rate will fall to 26% in 2018, from 27.% last year, giving the firm “a bit of a benefit” from the lower U.S. tax rate, Mr. Entricken said.However, not all of the changes brought by the tax overhaul are positive for Wolters Kluwer, Mr. Entricken said. This includes certain reductions in interest deductibility. “The U.S. tax base is certainly getting broader,” he said. The finance chief also said he plans to automate more tasks in his department this year to boost efficiency.
