Bench Acquisition Following Shutdown

Bench Acquisition: Employer.com Steps In After Sudden Shutdown

Following its unexpected closure last week, which left numerous clients unable to access their accounts, Bench, the venture capital-funded accounting startup, is set to be acquired by Employer.com for an undisclosed sum. This information was reported exclusively to TechCrunch.

A Shift in Focus: HR Tech to the Rescue

Employer.com, headquartered in San Francisco, specializes in payroll and onboarding solutions. This contrasts with Bench’s core competency in accounting and tax services. According to Matt Charney, Employer.com’s chief marketing officer, the company intends to reinstate Bench’s platform and furnish clients with guidance on regaining access to their data.

Options for Existing Bench Customers

Clients will have the option of transferring their data to another provider or continuing their service under the new ownership of Employer.com, as stated by Charney. The previous advice given by Bench – to request a six-month extension from the Internal Revenue Service while seeking a new bookkeeper – is now unnecessary for those who choose to remain with the platform.

Customer Base and Initial Disruption

Archived versions of Bench’s website indicate the platform previously served over 35,000 small business owners in the United States. However, Employer.com has since clarified that Bench currently has approximately 12,000 customers. The startup’s abrupt cessation of operations on Friday created significant disruption, particularly as tax season approaches, and attempts to contact Bench employees via email have been unsuccessful.

Acquisition Details Remain Confidential

Confirmation of the acquisition was obtained by TechCrunch from a member of Bench’s board of directors. Neither Bench nor Employer.com has disclosed the financial terms of the deal.

Employer.com’s Recent Formation and Expansion

Employer.com is a relatively new entity; its CEO, Jesse Tinsley, acquired the domain name in November for around $450,000. Tinsley also founded other HR-related businesses, including Recruiter.com and BountyJobs. He announced on December 11th that the company was actively pursuing further acquisitions within the HR sector. Employer.com is self-funded and does not rely on venture capital, according to Charney.

Continued Service and Future Enhancements

In a statement regarding the acquisition, Employer.com assured Bench customers that they can anticipate continued service from the same bookkeepers they have come to rely on. The company also indicated that the acquisition will facilitate future improvements and expanded capabilities leveraging Employer.com’s resources.

Workforce Implications and Reinstatement of Employees

Bench previously employed over 600 individuals, many of whom announced their job search on LinkedIn following the shutdown announcement. Jennifer Bouyoukos, Bench’s chief people officer, has informed TechCrunch that the company is in the process of recalling “many,” though not all, of its employees to maintain service continuity.