Thomson Reuters Makes Major Tax Automation Acquisition with SafeSend for $600M
In a strategic move, Thomson Reuters has acquired the innovative tax automation company SafeSend for a whopping $600 million in an all-cash deal. SafeSend, established in 2008 and based in Ann Arbor, Michigan, offers a cutting-edge cloud platform that revolutionizes the processing and sharing of crucial financial documents.
SafeSend’s platform facilitates various tasks, such as delivering tax returns, collecting e-signatures, automating workflows, and ensuring compliance obligations are met. The company boasts a workforce of 235 employees and has garnered support from Lead Edge Capital, with reports indicating that 70% of the top 100 accounting firms in the U.S. utilize SafeSend’s services.
Thomson Reuters, renowned for its news agency, extends its reach into tax and accounting domains with this acquisition. The Canadian company, known for its range of products in legal, tax, and accounting sectors, already enjoys native integrations with SafeSend’s technology. By taking SafeSend under its wing, Thomson Reuters aims to enhance support for the final stages of the tax return process, addressing challenges faced by tax professionals and taxpayers.
Furthermore, the acquisition aligns with Thomson Reuters’ previous move to acquire tax automation company SurePrep for $500 million in 2022. SafeSend and SurePrep share similarities in product offerings and a mutual focus on leveraging AI and automation in their solutions. The recent launch of SafeSend One, an AI-powered end-to-end tax solution, exemplifies the company’s commitment to innovation in the tax automation space.
Thomson Reuters plans to maintain SafeSend as a standalone product and continue supporting a variety of vendors in the tax software market. This acquisition reaffirms Thomson Reuters’ dedication to simplifying tax preparation workflows and meeting the dynamic needs of businesses in today’s complex tax landscape.