Thomson Reuters Acquires SafeSend for $600M

Thomson Reuters Completes Acquisition of SafeSend

Thomson Reuters has finalized the acquisition of SafeSend, a company specializing in tax automation, in a deal valued at $600 million paid entirely in cash.

SafeSend's Platform and Reach

Established in 2008, SafeSend, headquartered in Ann Arbor, Michigan, provides a cloud-based platform. This platform is engineered to optimize the handling and secure distribution of confidential financial documentation.

The company’s suite of tools facilitates the delivery of tax returns, secure electronic signature acquisition, payment collection, workflow automation, and adherence to regulatory requirements.

Company Details and Prior Funding

SafeSend employs approximately 235 individuals. Prior to the acquisition, the company had secured an undisclosed amount of funding from Lead Edge Capital.

Notably, 70% of the 100 largest accounting firms in the United States currently utilize SafeSend’s services.

thomson reuters acquires tax automation company safesend for $600m

Synergy with Thomson Reuters’ Existing Portfolio

While widely recognized for its news services, Thomson Reuters maintains a substantial portfolio of products within the legal, tax, and accounting sectors.

SafeSend already featured native integrations with Thomson Reuters’ tax preparation software. The acquisition will further enhance Thomson Reuters’ ability to support the final stages of the tax return process.

Statements from Thomson Reuters Leadership

“This acquisition demonstrates our dedication to resolving the changing difficulties encountered by both tax professionals and taxpayers,” stated Elizabeth Beastrom, President of Tax, Audit, and Accounting Professionals at Thomson Reuters.

“Integrating SafeSend’s innovative technology with our current solutions will streamline tax preparation processes and address the evolving needs of the businesses we serve, enabling them to succeed in a complex tax environment.”

Previous Acquisition and Industry Trends

This is not Thomson Reuters’ first venture into acquiring tax automation companies. In 2022, the company acquired SurePrep for $500 million.

There are significant similarities between SafeSend and SurePrep, particularly in their product offerings and their increasing adoption of AI and automation technologies.

SafeSend recently launched SafeSend One, an AI-powered product designed to automate the entire tax workflow, from document collection to return delivery.

Future Plans for SafeSend

Thomson Reuters intends to continue offering SafeSend as an independent product. The company will also maintain support for a variety of vendors within the tax software market.