Canadian media conglomerate Thomson Reuters has announced its intention to acquire SurePrep, a California-based tax automation software company. Founded in 2002, SurePrep’s products and solutions are used by more than 23,000 tax professionals, and it is projected to generate about $60 million in revenue in 2022. The all-cash transaction, worth $500 million, is expected to close in Q1 2023.
Although it is well known for its news and media divisions, Thomson Reuters also operates a tax & accounting business that generated revenue of more than $900 million in 2021. The addition of SurePrep is expected to build on the companies’ existing partnership and reseller arrangements to provide end-to-end tax automation, according to SurePrep Chief Executive Officer Dave Wyle.
SurePrep’s solutions integrate with other existing tax software systems, enabling tax preparers to upload documents at regular intervals throughout the year via automated document requests, and providing support for mobile scanning, e-signatures, and more. Built-in AI automation manages data in clients’ preferred tax compliance software, eliminating many manual paperwork steps.