Canadian multinational media conglomerate Thomson Reuters (NYSE:TRI) (TSE:TRI) has inked a deal to acquire a U.S.-based tax automation software and services provider, SurePrep, in a $500 million all-cash deal.
Benefits of the Deal
SurePrep is a leading provider of software and services in tax automation for tax professionals. This year, the company is expected to generate revenue of $60 million and post growth of over 20% in the coming years.
Through the deal with the long-time partner SurePrep, Thomson Reuters aims to provide a stronger foundation for end-to-end tax automation as well as bolster investments in automation and customer experiences.
Elizabeth Beastrom, President of Tax & Accounting Professionals at Thomson Reuters, commented, “the acquisition will support our strategy to empower tax and accounting professionals with the very best technology to simplify workflows, drive insights and improve efficiency.”
Thomson Reuters is expected to receive a $60 million tax benefit from the deal. The deal, subject to certain approvals, is expected to be completed in Q1 2023.
Is TRI Stock a Buy?
As per TipRanks, analysts are cautiously optimistic about Thomson Reuters stock and have a Moderate Buy consensus rating, which is based on two Buys and two Holds. Thomson Reuters’ average price forecast of $116.58 implies 6.2% upside potential.