Thomson Reuters to acquire American tax software provider SurePrep

Thomson Reuters, a business information services provider, has agreed to acquire SurePrep, a US-based tax software provider, in an all-cash transaction valued at $500 million.

The proposed transaction is expected to help Thomson Reuters save around $60 million on estimated tax with a net present value at the time of purchase.

SurePrep, founded in 2002, enables accounting firms to minimize administrative costs, maximize review efficiency, digitalize workpaper preparation, and advance client service.

Embraced by more than 23,000 tax professionals at CPA firms and wealth management firms, the tax automation provider’s products and solutions integrate with tax software to automate and streamline the entire 1040 process.

SurePrep’s key software and services include 1040SCAN, SPbinder, and TaxCaddy.

Elizabeth Beastrom — Thomson Reuters Tax & Accounting Professionals President 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.”

SurePrep is anticipated to generate around $60 million of revenue in 2022 and scale more than 20% per year over the next few years.

Since April 2022, Thomson Reuters and SurePrep have been collaborating to deliver complementary solutions that profit tax and accounting firms.

Dave Wyle — SurePrep CEO 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.”

Subject to certain regulatory approvals and customary closing conditions, the transaction is expected to close in Q1 2023.