Thomson Reuters Acquires Tax Automation Company SafeSend for $600 Million

Thomson Reuters, the Canadian multinational corporation known for its wide array of products in news, legal, and tax sectors, has acquired SafeSend, a tax automation company, for a whopping $600 million in an all-cash transaction. This acquisition is set to further streamline tax-related processes by combining SafeSend’s innovative technology with Thomson Reuters’ already extensive tax solutions.

What Does SafeSend Offer?

Founded in 2008, SafeSend is based in Ann Arbor, Michigan, and provides a cloud-based platform designed to simplify the processing and sharing of sensitive financial documents. The company’s tools cover a wide range of services, including:

Tax return delivery
E-signature collection
Payment collection
Workflow automation
Compliance meeting

With over 235 employees, SafeSend is already widely used, with 70% of the top 100 accounting firms in the U.S. leveraging its services to improve efficiency in their tax preparation processes.

Thomson Reuters and SafeSend’s Strategic Fit

Thomson Reuters is no stranger to tax automation acquisitions, having previously acquired SurePrep for $500 million in 2022. SafeSend’s acquisition fits perfectly with Thomson Reuters’ goal to enhance tax preparation workflows and provide tax professionals and businesses with a more efficient, AI-driven solution. In fact, SafeSend already offers integrations with Thomson Reuters’ existing tax preparation software.

Elizabeth Beastrom, president of tax, audit, and accounting professionals at Thomson Reuters, highlighted the strategic value of this acquisition in a press release, stating:

“This acquisition underscores our commitment to addressing the evolving challenges faced by tax professionals and taxpayers alike.”

The addition of SafeSend will help Thomson Reuters address the “last mile” of the tax return process and further support businesses navigating the complexities of the tax landscape.

The Rise of AI in Tax Automation

SafeSend has already embraced AI-driven solutions to automate the tax process. In November 2023, the company launched SafeSend One, a new AI product that automates everything from document gathering to tax return delivery, making it easier for businesses to complete their tax filings quickly and accurately.

What’s Next for SafeSend?

Thomson Reuters has announced that SafeSend will continue to operate as a standalone product, while integrating with their other offerings. The company also emphasized its continued support for multiple vendors across the tax software industry, ensuring a broad compatibility within the ecosystem.