Thomson Reuters to bolster tax automation portfolio with SafeSend acquisition

Thomson Reuters Corporation, a global leader in content and technology, has announced its acquisition of SafeSend, a Michigan-based provider of cloud-native tax workflow solutions. The $600 million cash deal, revealed on January 2, 2025, is poised to reshape tax automation for accounting firms and their clients across the United States.

Driving Efficiency in Tax Preparation with SafeSend

SafeSend, founded in 2008, specialises in simplifying tax return workflows through automation. The company’s flagship solutions address critical inefficiencies in the final stages of tax preparation, including assembling documents, collecting taxpayer e-signatures, and securely delivering returns. Its innovative technology is widely used by firms of all sizes, with 70% of the top 500 U.S. accounting firms relying on SafeSend’s products to streamline operations.

Elizabeth Beastrom, President of Tax, Audit and Accounting Professionals at Thomson Reuters, highlighted the strategic importance of the acquisition. She explained that integrating SafeSend’s technology will enable Thomson Reuters to further its mission of enhancing productivity and simplifying compliance for tax professionals and their clients.

A Vision for a Connected Tax Technology Ecosystem

Thomson Reuters plans to continue offering SafeSend as a standalone solution while ensuring it remains compatible with other leading tax software platforms. This approach aligns with the company’s broader strategy of creating a connected ecosystem where tax professionals can seamlessly integrate tools from multiple vendors.

The compatibility of SafeSend’s products with platforms like Thomson Reuters UltraTax CS, Intuit Lacerte, and CCH Axcess underscores its commitment to flexibility. This integration allows firms to adopt advanced automation without disrupting existing workflows, a crucial factor in an industry where accuracy and efficiency are paramount.

Expert Insights on Innovation in Tax Automation

According to Steve Dusablon, SafeSend’s co-founder, the acquisition represents an opportunity to accelerate product innovation while expanding the company’s reach. He emphasised that the partnership with Thomson Reuters would allow SafeSend to realise its vision of delivering end-to-end tax workflow solutions.

Co-founder Andrew Hatfield echoed these sentiments, describing the acquisition as a pivotal moment in SafeSend’s journey. He reiterated the company’s dedication to addressing the pain points of tax professionals by continuously refining its offerings.

Financial Impact and Growth Projections

SafeSend is projected to generate $60 million in revenue in 2025, with anticipated annual growth rates exceeding 25% over the next several years. This financial outlook underscores the rising demand for automation in tax preparation, driven by increasingly complex regulatory requirements and a growing emphasis on operational efficiency.

Redefining Client Experiences in Tax Workflows

SafeSend’s flagship product, SafeSend One, offers comprehensive automation capabilities that enhance both preparer and client experiences. Features include AI-driven document gathering, digital fillable organisers, e-signature collection, and secure file transfer. By eliminating the need for manual processes, the software allows firms to focus on providing strategic insights rather than administrative tasks.

Notably, SafeSend One integrates seamlessly with existing tax platforms, enabling firms to deliver completed returns in minutes, automate reminders for payments and signatures, and ensure secure communication with clients.

The Road Ahead for Thomson Reuters and SafeSend

The acquisition underscores Thomson Reuters’ commitment to empowering tax professionals with innovative tools that address evolving industry challenges. As regulatory landscapes grow more intricate, the integration of SafeSend’s technology is expected to play a pivotal role in enabling firms to maintain compliance while improving efficiency.

This strategic move also positions Thomson Reuters as a leader in the tax automation space, setting a new standard for how firms approach tax preparation and client engagement.