TORONTO, Nov. 11,
2022 /PRNewswire/ -- Thomson Reuters Corporation
("Thomson Reuters") (NYSE / TSX: TRI) announced today it has signed
a definitive agreement to acquire SurePrep, LLC ("SurePrep"), a
US-based leader in 1040 tax automation software and services, for
$500 million in cash (the "Proposed
Transaction"). Thomson Reuters expects to receive an estimated
tax benefit with a net present value at time of purchase of
approximately $60 million as part of
the transaction.
Founded in 2002, SurePrep is focused on helping accounting firms
increase productivity and profitability while promoting a
completely digital tax workflow. SurePrep's products and solutions
are used by over 23,000 tax professionals at CPA firms, wealth
management firms and others. Closing of the transaction is subject
to specified regulatory approvals and customary closing conditions
and is anticipated to occur in the first quarter of 2023.
With a consumer-grade mobile friendly design, SurePrep leverages
artificial intelligence to automate the collection of digital
documents directly from clients and the processing of those
documents, automatically extracting and populating key data into
the firm's tax compliance software to help CPAs be more
efficient. SurePrep's core software and services include
1040SCAN, SPbinder and TaxCaddy.
SurePrep is expected to generate approximately $60 million of revenue in 2022 and grow in excess
of 20% annually in the next few years. Adjusted EBITDA is expected
to be neutral in the first year, followed by annual increases
thereafter, as integration costs subside and revenue scales.
Acquired deferred revenue is expected to be a modest free cash flow
drag in the first year.
Thomson Reuters and SurePrep have been partnering since
April 2022, 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
& Accounting Professionals at Thomson Reuters.
"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," said Dave Wyle, CEO at SurePrep. "Additionally,
Thomson Reuters has made it clear they are committed to maintaining
SurePrep's ability to interoperate with multiple vendors across an
open tax software ecosystem. We could not be more excited for what
this combination brings to our team members, our customers, and the
future of applied artificial intelligence."
Thomson Reuters
Thomson Reuters is a leading provider of business information
services. Our products include highly specialized
information-enabled software and tools for legal, tax, accounting
and compliance professionals combined with the world's most global
news service – Reuters. For more information on Thomson Reuters,
visit tr.com and for the latest world news, reuters.com.
SurePrep
SurePrep was founded in 2002 and is a leader in tax automation
for tax professionals. SurePrep's solutions deliver seamless
integration with tax software to automate and streamline the entire
1040 process for both the taxpayer and tax professional. SurePrep's
solutions are used by over 23,000 tax professionals ranging from
Big 4 firms to sole practitioners to reduce administrative costs,
automate workpaper preparation, maximize review efficiency, and
improve client service.For more information on SurePrep's products
and services visit sureprep.com or call (800) 805-8582.
SurePrep is registered trademark of SurePrep, LLC.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS, MATERIAL
RISKS AND MATERIAL ASSUMPTIONS
Certain statements in this news release are forward-looking,
including but not limited to the company's expectations about the
expected tax benefit of the Proposed Transaction, the expected
closing date for the Proposed Transaction, SurePrep's expected 2022
revenue, SurePrep's annual growth over the next few years, the
impact of the Proposed Transaction on Thomson Reuters' adjusted
EBITDA, deferred revenue and free cash flow, and the strategic
benefits of the Proposed Transaction. The words "will", "expect",
"believe" and similar expressions identify forward-looking
statements. While the company believes that it has a reasonable
basis for making forward-looking statements in this news release,
they are not a guarantee of future performance or outcomes and
there is no assurance that any of the other events described in any
forward-looking statement will materialize. Forward-looking
statements are subject to a number of risks, uncertainties and
assumptions that could cause actual results or events to differ
materially from current expectations. Many of these risks,
uncertainties and assumptions are beyond our company's control and
the effects of them can be difficult to predict. You are cautioned
not to place undue reliance on forward-looking statements which
reflect expectations only as of the date of this news release.
Except as may be required by applicable law, Thomson Reuters
disclaims any obligation to update or revise any forward-looking
statements.
CONTACTS
MEDIA
Andrew Green
Senior Director,
Corporate Affairs
+1 332 219
1511
andrew.green@tr.com
|
INVESTORS
Gary E. Bisbee,
CFA
Head of Investor
Relations
+1 646 540
3249
gary.bisbee@tr.com
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/thomson-reuters-corporation-signs-definitive-agreement-to-acquire-sureprep-llc-301675539.html
SOURCE Thomson Reuters