Thomson Reuters Strengthens Tax Automation Portfolio with SafeSend Acquisition
In a significant move to enhance its tax automation capabilities, Thomson Reuters has acquired SafeSend, a company specializing in cloud-based tax document management solutions, for $600 million in an all-cash transaction. Founded in 2008 and based in Ann Arbor, Michigan, SafeSend offers a platform that simplifies the handling of sensitive financial documents. Its tools are designed to streamline the delivery of tax returns, facilitate e-signature collection, automate workflows, and ensure compliance — all critical services for modern accounting firms.
SafeSend has established itself as a respected player in the industry, boasting a workforce of around 235 employees and claiming usage by 70% of the top 100 accountancy firms in the U.S. The company had previously received investment from Lead Edge Capital, although the exact amount was not disclosed.
“This acquisition underscores our commitment to addressing the evolving challenges faced by tax professionals and taxpayers alike,” commented Elizabeth Beastrom, president of tax, audit, and accounting professionals at Thomson Reuters.
Thomson Reuters Press Release
While commonly recognized for its news agency, Thomson Reuters also offers a diverse range of products within the legal, tax, and accounting fields. The acquisition of SafeSend is particularly strategic as it already integrates natively with Thomson Reuters’ existing tax preparation software. This synergy is expected to bolster support for what is often referred to as the “last mile” of the tax return process.
- SafeSend’s innovative technology aims to transform traditional tax preparation workflows.
- The acquisition echoes Thomson Reuters’ previous purchase of SurePrep for $500 million in 2022.
- Both SafeSend and SurePrep have been pioneers in adopting AI and automation within their product offerings.
Recently, SafeSend unveiled “SafeSend One,” an AI-driven solution that fully automates the tax process from document gathering to final delivery. Thomson Reuters intends to maintain SafeSend as a standalone product while continuing to support various vendors within the tax software ecosystem.
This acquisition highlights Thomson Reuters’ dedication to providing comprehensive solutions that meet the dynamic needs of businesses navigating an increasingly complex tax landscape. By integrating cutting-edge technology with established products, they are poised to help clients thrive amidst ongoing industry challenges.
