Thomson Reuters Corporation (NYSE / TSX: TRI), announced it has closed on its previously announced acquisition of SurePrep, an Irvine, CA-based 1040 tax automation software and services company.
On November 11, 2022, Thomson Reuters announced that it had reached a definitive agreement to acquire SurePrep for $500M in cash.
With the acquisition, SurePrep will become part of Tax and Accounting Professionals operations, with revenues in both Tax & Accounting Professionals and Corporates. Thomson Reuters will add David Wyle and SurePrep colleagues to the team, ensuring continuity for customers, partners and employees as they continue to offer SurePrep as a market solution.
Led by CEO Dave Wyle, SurePrep is a provider of automation solutions for tax professionals. Its solutions deliver integration with tax software to automate and streamline the entire 1040 process for both the taxpayer and tax professional. Its core software and services include 1040SCAN, SPbinder and TaxCaddy. They are used by over 23,000 tax professionals ranging from Big 4 firms to sole practitioners to reduce administrative costs, automate workpaper preparation, and improve client service.
SurePrep is expected to generate approximately $60m of revenue in 2022 and grow in excess of 20% annually in the next few years. Adjusted EBITDA is expected to be neutral in the first year, followed by annual increases thereafter, as integration costs subside and revenue scales. Acquired deferred revenue is expected to be a modest free cash flow drag in the first year.
FinSMEs
04/01/2023