Thomson Reuters to collect tax software provider for $500 million

  • Thomson Reuters Corporation (NYSE: TRI) has agreed to acquire SurePrep, LLCa US leader in 1040 tax automation software and services, for $500 million in cash.

  • Thomson Reuters expects to receive an estimated tax benefit with a net present value at the time of purchase of $60 million as part of the transaction.

  • Founded in 2002, SurePrep helps accounting firms increase productivity and profitability while fostering a digital tax workflow.

  • More than 23,000 tax professionals use SurePrep’s products and solutions at CPAs, wealth management firms and others.

  • SurePrep will likely generate approximately $60 million in revenue in 2022 and grow more than 20% annually for the next few years.

  • Adjusted EBITDA will likely be neutral in the first year, followed by yearly increases.

  • Earned deferred revenue will likely be a modest drag on free cash flow in the first year.

  • “The acquisition will support our strategy to equip tax and accounting professionals with the best technology to simplify workflows, generate insights and improve efficiency,” said Elizabeth Beastrom, President of Tax and Accounting Professionals. tax and accounting at Thomson Reuters.

  • Thomson Reuters held $459 million in cash and cash equivalents as of September 30.

  • Price action: Shares of TRI traded up 0.34% at $110.70 when last checked on Friday.

  • Photo by Capri23auto from Pixabay

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