#Canada #Toronto #Thomson Reuters #Tax Automation #SafeSend

Thomson Reuters Expands Tax Services with SafeSend Acquisition

In a significant move slated to reshape the tax services landscape, Thomson Reuters Corporation, a leading global content and technology provider, has announced its acquisition of cPaperless, LLC, operating under the name SafeSend. For a hefty $600 million in cash, this acquisition aims to expand Thomson Reuters' tax automation capabilities, focusing particularly on streamlining operations for tax and accounting professionals.

SafeSend’s Role in Tax Automation

Founded in 2008 and headquartered in Michigan, SafeSend specializes in creating technology solutions for tax and accounting experts. The company has established itself as a reliable partner for a variety of firms, automating crucial aspects of the tax return process, including the assembly, review, e-signature, and delivery phases. With its cloud-based solutions, SafeSend addresses significant challenges faced by its clientele, effectively removing the manual labor associated with tax preparation.

In fact, the platform has gained traction among accounting firms across the United States, with 70% of the top 500 firms leveraging its offerings. With a workforce comprising 235 employees, SafeSend is well-equipped to meet the evolving demands of the tax landscape, especially as more firms adopt digital solutions.

The Vision Behind the Acquisition

Thomson Reuters envisions this acquisition as more than a simple expansion of its services. By integrating SafeSend's innovative technology with its existing product suite, Thomson Reuters aims to enhance workflow efficiency for tax preparers and their clients. Elizabeth Beastrom, president of Tax, Audit, and Accounting Professionals at Thomson Reuters, emphasized the company's customer-first approach, stating that the acquisition highlights Thomson Reuters’ commitment to solving the pressing issues that tax professionals encounter today.

Steve Dusablon, co-founder of SafeSend, noted that joining forces with Thomson Reuters is an exciting step for the company's customers, as it will help accelerate product development and align with a vision for comprehensive tax workflow solutions. Alongside Dusablon, SafeSend co-founder Andrew Hatfield remarked that their shared focus on customer needs would allow them to simplify the tax process even further.

Financial Outlook

SafeSend is projected to generate approximately $60 million in revenue for Thomson Reuters in 2025, not accounting for fair value adjustments to the acquired deferred revenue. Furthermore, there are expectations for SafeSend's revenue to grow by more than 25% annually in the coming years. This growth trajectory indicates the increasing demand for automation solutions in the accounting domain.

As this new chapter unfolds, both companies are poised to leverage their strengths for mutual benefit. The integration is anticipated to offer a more cohesive service offering to businesses navigating a complex tax landscape, ultimately leading to enhanced client satisfaction and improved business outcomes.

About Thomson Reuters

Thomson Reuters, listed on both NYSE and TSX as TRI, delivers crucial content and technology solutions to various sectors, including legal, tax, government, and media. The company integrates specialized software and insights, empowering professionals to make informed decisions that drive results. With Reuters as its integral arm for trusted journalism, the brand continues to play a vital role in informing global audiences and serving professionals across multiple industries.

In conclusion, this acquisition signals Thomson Reuters’ commitment to transforming the tax and accounting landscape through innovative technology and improved service delivery. As they embark on this collaborative journey with SafeSend, the future looks promising for both organizations, as well as for the accounting and tax professionals they serve.