Bench, the VC-backed accounting startup that abruptly shut down couple of days ago, leaving thousands of customers locked out of their accounts, has been acquired by Employer.com in a last-minute deal. The acquisition, confirmed by TechCrunch, was for an undisclosed amount.
Employer.com, a San Francisco-based HR tech company, focuses on payroll and employee onboarding, unlike Bench, which specialized in accounting and tax services. Matt Charney, Employer.com’s chief marketing officer, stated that the company plans to revive Bench’s platform and provide customers with instructions to log in and recover their data.
What This Means for Bench Customers
Customers will have the option to either migrate their data to another provider or continue using Bench’s services under its new ownership. Charney also confirmed that Bench’s prior recommendation for clients to file for a six-month tax extension is no longer necessary if they choose to stay with the platform.
Before its website was taken offline, Bench claimed to serve over 35,000 small business owners across the U.S., according to archived records. However, Employer.com later clarified that the actual number of Bench customers is closer to 12,000. Currently, the Bench website displays a message stating, “More information on how to continue your services will be available soon.” The startup’s sudden closure caused significant disruption, particularly as it coincided with the start of tax season.
The Acquisition in Context
Employer.com is a relatively new player in the HR tech space. Its CEO, Jesse Tinsley, purchased the domain name in November for approximately $450,000. Tinsley has previously been involved in other HR-related ventures, including Recruiter.com and BountyJobs. Employer.com operates without venture capital funding, relying solely on self-financing, as confirmed by Charney.
In a statement announcing the acquisition, Employer.com reassured Bench customers that they would still be supported by the same trusted in-house bookkeepers. The company also highlighted plans for future enhancements enabled by its resources.
“This acquisition ensures that Bench customers can continue relying on the high-quality service they’ve come to expect while also opening up opportunities for future innovations and capabilities,” the statement read.
Challenges Ahead
Despite Employer.com’s assurances, the transition won’t be without challenges. Bench employed more than 600 people, and many took to LinkedIn to announce they were seeking new roles after the company’s sudden shutdown. Jennifer Bouyoukos, Bench’s chief people officer, told that the company has started rehiring “many” employees, though not all, to maintain continuity for customers.
While the acquisition offers a lifeline for Bench’s customers and its platform, Employer.com faces significant hurdles in restoring stability and trust. Whether these efforts succeed in revitalizing Bench’s operations and satisfying its customer base will become clearer in the coming months.
