U.S.-based H&R Block, Inc., a tax preparation company, intends to purchase Wave Financial, a Canadian financial planning platform for small business owners.

The acquisition will enable H&R Block to expand its product and customer portfolio through Wave's accounting, invoicing, payroll and payment software solutions. More so, the deal will allow Wave to add H&R Block tax solutions to its product suite.

The C$537 million ($404.1 million) transaction is part of H&R Block’s strategy to pursue new growth opportunities and grow into the small business market.

Upon closing, the acquisition, which is still subject to regulatory approval and closing conditions, Wave will continue to operate independently.