Thomson Reuters to acquire PE-backed SurePrep for $500m

SurePrep in 2019 secured a minority investment from Bregal Sagemount, a New York-based growth-focused private equity firm.

  • Thomson Reuters expects to receive a tax benefit with a net present value at time of purchase of about $60 million
  • Thomson Reuters and SurePrep have been partnering since April, providing complementary solutions that benefit tax and accounting professionals
  • SurePrep’s solutions are used by more than 23,000 professionals

Thomson Reuters Corp has agreed to acquire SurePrep, an Irvine, California-based provider of professional tax automation software and services.

Thomson Reuters, a Toronto-based provider of business information services, will pay $500 million in cash. It expects to receive an estimated tax benefit with a net present value at time of purchase of about $60 million as part of the transaction.

The deal is expected to close in the first quarter of 2023.

Founded in 2002, SurePrep is focused on helping accounting businesses increase productivity and profitability while promoting a digital tax workflow. Its solutions are used by more than 23,000 tax professionals at CPA companies, wealth management firms and others.

Thomson Reuters and SurePrep have been partnering since April, providing complementary solutions that benefit tax and accounting professionals. Thomson Reuters will continue its open ecosystem strategy after the acquisition of SurePrep, with the combined entity providing an enhanced foundation for accelerated investment in automation and customer experiences.

“Thomson Reuters sees significant value and opportunities in SurePrep. The acquisition will support our strategy to empower tax and accounting professionals with the very best technology to simplify workflows, drive insights and improve efficiency,” stated Elizabeth Beastrom, president of tax and accounting professionals at Thomson Reuters, in a statement.

SurePrep in 2019 secured a minority investment from Bregal Sagemount, a New York-based growth-focused private equity firm.