TORONTO, Jan. 3, 2023
/CNW/ -- Thomson Reuters Corporation ("Thomson Reuters") (NYSE
/ TSX: TRI) announced today it has closed on its previously
announced acquisition of SurePrep, LLC ("SurePrep"), a US-based
leader in 1040 tax automation software and services. On
November 11, 2022, Thomson Reuters
announced that it had reached a definitive agreement to
acquire SurePrep for $500 million in
cash.
SurePrep is a California-based
company that helps accounting firms increase productivity and
profitability. 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. Its products and solutions,
including 1040SCAN, SPbinder and TaxCaddy, are used by over 23,000
tax professionals at CPA firms, wealth management firms and
others.
The acquisition supports Thomson Reuters' strategy of pursuing
both organic and inorganic growth opportunities as it promotes
seamless, cloud-based workflows for professionals through
innovative digital solutions and open, smart, and connected
platforms.
SurePrep will become part of Tax and Accounting Professionals
operations, with revenues in both Tax & Accounting
Professionals and Corporates. Thomson Reuters welcomes David Wyle and SurePrep colleagues to the team,
ensuring continuity for customers, partners and employees as they
continue to offer SurePrep as a market solution.
"We are wholly focused on helping tax professionals be more
productive by providing them with the tools they need for success,"
said Elizabeth Beastrom, President
of Tax & Accounting Professionals at Thomson Reuters. "SurePrep
helps customers save both time and costs as they face difficult
economic conditions, as well as greater legislative complexity. We
are eager to unlock SurePrep's true potential across our Tax and
Accounting customers as we provide an open, integrated platform.
Thomson Reuters will continue existing product integrations, with
plans to develop further support for a connected tax
ecosystem."
As previously disclosed in the November 11, 2022 news release, 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.
About 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.
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
SurePrep's expected 2022 revenue, SurePrep's annual growth over the
next few years and the impact of the transaction on Thomson
Reuters. 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 Bisbee,
CFA
Head of Investor
Relations
+1 646 540
3249
gary.bisbee@tr.com
|
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SOURCE Thomson Reuters