Thomson Reuters completes acquisition of SurePrep

Thomson Reuters closed on its previously announced acquisition of SurePrep, a US-based leader in 1040 tax automation software and services. On November 11, 2022, Thomson Reuters announced that it had reached a definitive agreement to acquire SurePrep for $500M in cash. The acquisition supports Thomson Reuters’ strategy of pursuing both organic and inorganic growth opportunities as it promotes seamless, cloud-based workflows for professionals through innovative digital solutions and open, smart, and connected platforms. SurePrep will become part of Tax and Accounting Professionals operations, with revenues in both Tax & Accounting Professionals and Corporates. Thomson Reuters welcomes David Wyle and SurePrep colleagues to the team, ensuring continuity for customers, partners and employees as they continue to offer SurePrep as a market solution. As previously disclosed in the November 11, 2022 news release, SurePrep is expected to generate approximately $60less than of revenue in 2022 and grow in excess of 20% annually in the next few years. Adjusted EBITDA is expected to be neutral in the first year, followed by annual increases thereafter, as integration costs subside and revenue scales. Acquired deferred revenue is expected to be a modest free cash flow drag in the first year.