Thomson Reuters closes acquisition of US tax software company SurePrep for $500 million

Deal marks latest in series of AI-focused acquisitions made by Thomson Reuters.

Toronto-based business information services firm Thomson Reuters shared on Tuesday that it has completed its acquisition of SurePrep.

The deal, initially announced in November 2022, saw Thomson Reuters pay $500 million USD in cash for the California-based tax automation software and services company.

Thomson Reuters and SurePrep had been partners since April of last year.

Thomson Reuters and SurePrep had been partners since April of last year. As SurePrep CEO Dave Wyle put it, “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.”

As part of the deal, SurePrep will now become a part Thomson Reuters’ Tax and Accounting Professionals operations and Thomson Reuters has brought on SurePrep CEO David Wyle along with other SurePrep employees.

“We are wholly focused on helping tax professionals be more productive by providing them with the tools they need for success,” said Thomson Reuters President of Tax and Accounting Professionals Elizabeth Beastrom. “SurePrep helps customers save both time and costs as they face difficult economic conditions, as well as greater legislative complexity.”

SurePrep helps accounting firms boost productivity and profitability by using artificial intelligence (AI) to collect and process documents from clients. The company’s offerings, which include 1040SCAN, SPbinder, and TaxCaddy, serve over 23,000 tax professional customers at CPA and wealth management firms.

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For Thomson Reuters, the purchase of SurePrep marks the latest in a series of acquisitions the company has made of tech firms with solutions that use AI to ease the plight of legal, tax, accounting, and compliance professionals. Some of Thomson Reuters other recent acquisitions include Brazilian accounting automation software firm Gestta and United States-based AI-powered legaltech company ThoughtTrace in 2022.

Thomson Reuters’ own suite of offerings consists of a variety of information-enabled software and tools for legal, tax, accounting, and compliance professionals, as well as a global news service in Reuters.

Thomson Reuters expects SurePrep to generate approximately $60 million of revenue in 2022 and grow in excess of 20 percent annually in the next few years.

Feature image courtesy Thomson Reuters.

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