Thomson Reuters acquires tax automation software startup SurePrep for $500 million
After a daily barrage of news in the past five days over the collapse of the crypto market, we finally have some good news to share. Today, Thomson Reuters announced Friday it has acquired SurePrep, a 1040 tax automation software provider of tax automation software and services, for $500 million in cash.
In a statement, the global information company said it has signed a definitive agreement to acquire the SurePrep to support its strategy to empower tax and accounting professionals. The two companies have been partnering since April 2022.
Founded in 2002, the Irvine, California-based SurePrep provides products and services that help accounting firms to increase their productivity and profitability while promoting a completely digital tax workflow. Its products and solutions are used by over 23,000 tax professionals at CPA firms, and wealth management firms, among others.
SurePrep is projected to generate about $60 million in revenue in 2022 and is expected to grow more than 20% annually in the next few years.
In a statement, the President of Tax & Accounting Professionals at Thomson Reuters Elizabeth Beastrom said: “Thomson Reuters sees significant value and opportunities in SurePrep. The acquisition will support our strategy to empower tax and accounting professionals with the very best technology to simplify workflows, drive insights and improve efficiency.”
“This transaction builds on our existing partnership/reseller arrangement to deliver our vision of end-to-end tax automation that solves our customers’ biggest pain points,” said Dave Wyle, CEO at SurePrep.
He added, “Additionally, Thomson Reuters has made it clear they are committed to maintaining SurePrep’s ability to interoperate with multiple vendors across an open tax software ecosystem. We could not be more excited for what this combination brings to our team members, our customers, and the future of applied artificial intelligence.”
The acquisition deal is expected to close in the first quarter of 2023.