Thomson Reuters has signed an agreement to acquire tax automation software provider SurePrep for $500m in cash.
According to Reuters, it expects to receive an estimated tax benefit with a net present value at the time of purchase of approximately $60m as part of the transaction.
Founded in 2002, SurePrep is focused on helping accounting firms increase productivity and profitability while promoting a completely digital tax workflow. SurePrep’s products and solutions are used by over 23,000 tax professionals at CPA firms, wealth management firms and others.
SurePrep leverages AI to automate the collection of digital documents directly from clients and the processing of those documents, automatically extracting and populating key data into the firm’s tax compliance software to help CPAs be more efficient.
The company is expected to generate approximately $60m of revenue in 2022 and grow in excess of 20% annually in the next few years.
Both Reuters and SurePrep have been partnering since April 2022, providing complementary solutions that benefit tax and accounting professionals. Thomson Reuters will continue its open ecosystem strategy after the acquisition of SurePrep, with the combined entity providing an enhanced foundation for accelerated investment in automation and customer experiences.
The closing of the transaction is subject to specified regulatory approvals and customary closing conditions and is anticipated to occur in the first quarter of 2023.
SurePrep CEO Dave Wyle said, “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.
“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.”
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