Thomson Reuters acquires tax automation company SafeSend in an all-cash transaction valued at $600 million.
Founded in 2008, Ann Arbor, Michigan-based SafeSend offers a cloud-based platform designed to streamline the processing and sharing of sensitive financial documents. This includes tools to file tax returns, collect electronic signatures, collect payments, automate workflows, meet compliance obligations, and more.
SafeSend, which has some 235 employees, previously raised an undisclosed figure of Peak capitaland claims it is used by 70% of the top 100 accounting firms in the United States.
Although Thomson Reuters is known for its news agency, the Canadian company also operates a range of products covering legal, tax and accounting spheres. In fact, SafeSend already offers native integrations with Thomson Reuters’ tax preparation software, and bringing the company under its direct management, this will go some way to helping Thomson Reuters support the so-called “last mile” of the tax preparation process. tax return.
“This acquisition underscores our commitment to addressing the evolving challenges facing tax professionals and taxpayers,” Elizabeth Beastrom, president of tax, auditing and accounting professionals at Thomson Reuters, said in a statement. press release. press release announcing the acquisition. “By integrating SafeSend’s innovative technology with our existing solutions, we are simplifying tax preparation workflows and meeting the dynamic demands of the businesses we serve to help them thrive in an increasingly complex tax landscape.” »
SafeSend is not the first such tax automation company acquired by Thomson Reuters. bought SurePrep in $500 million deal in 2022. Indeed, there are clear parallels between SafeSend and SurePrep, both in terms of their product range and how they have begun to embrace AI and automation. At the beginning of November, SafeSend spear a new AI product called SafeSend One, which automates the entire tax process, from document collection to tax return delivery.
Thomson Reuters says it plans to continue offering SafeSend as a standalone product and will continue to support multiple vendors in the tax software space.