Thomson Reuters has completed the acquisition of SafeSend, a tax automation company, in a $600 million all-cash deal.
Founded in 2008 and based in Ann Arbor, Michigan, SafeSend offers a cloud-based platform designed to simplify the handling and sharing of sensitive financial documents. Its features include tools for delivering tax returns, collecting e-signatures, automating workflows, processing payments, and ensuring compliance with tax regulations.
With a team of around 235 employees, SafeSend counts 70% of the top 100 accounting firms in the United States among its users. The company had previously received funding from Lead Edge Capital, though specific investment figures were not disclosed.
A Closer Look at SafeSend’s Role
SafeSend is already well-integrated into the Thomson Reuters ecosystem, as its platform works seamlessly with Thomson Reuters’ tax preparation software. This acquisition further solidifies the connection, enhancing support for the “last mile” of the tax filing process by streamlining the customer experience.
“This acquisition reflects our commitment to helping tax professionals and businesses navigate an increasingly complex tax landscape,” said Elizabeth Beastrom, president of the Tax, Audit, and Accounting Professionals division at Thomson Reuters. “By combining SafeSend’s innovative technology with our existing solutions, we’re delivering streamlined workflows and addressing the evolving needs of our clients.”
Following the Path of SurePrep
This isn’t Thomson Reuters’ first foray into tax automation acquisitions. In 2022, the company purchased SurePrep for $500 million. Both SurePrep and SafeSend have focused on introducing AI-driven solutions to the tax industry, with SafeSend recently launching a new product, SafeSend One. This tool uses artificial intelligence to automate the entire tax process, from document collection to tax return delivery.
Looking Ahead: SafeSend’s Independence
While SafeSend will now operate under Thomson Reuters, the company has stated its commitment to keeping SafeSend as a standalone product. It will also maintain support for integrations with other tax software providers, ensuring that its clients can continue using their preferred tools.
This acquisition underscores Thomson Reuters’ broader strategy to expand its capabilities in the tax and accounting space while remaining at the forefront of innovation. By leveraging SafeSend’s expertise, the company aims to further simplify tax workflows and meet the growing demands of an increasingly global and digitized market.
