Thomson Reuters CorpTRI agreed to acquire SurePrep, LLC, a U.S.-based 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 promoting a digital tax workflow.
Over 23,000 tax professionals use SurePrep’s products and solutions at CPA, wealth management firms, and others.
SurePrep will likely generate approximately $60 million of revenue in 2022 and grow over 20% annually in the next few years.
Adjusted EBITDA will likely be neutral in the first year, followed by annual increases.
Acquired deferred revenue will likely be a modest free cash flow drag in the first year.
“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,” stated Elizabeth Beastrom, President of Tax & Accounting Professionals at Thomson Reuters.
