By Adriano Marchese


Thomson Reuters Corp. said Friday that it agreed to acquire U.S.-based tax-automation software and services provider SurePrep LLC for $500 million in cash.

The Canadian media conglomerate said the two companies already have an existing relationship, partnering since April to provide complementary solutions for tax and accounting professionals.

Thomson Reuters said it will continue its open ecosystem strategy after the acquisition, with the combined business providing an improved foundation for accelerated investment in automation and customer experience.

SurePrep is expected to generate about $60 million in revenue in 2022, and then grow 20% or more annually in the next few years, Thomson Reuters said. Adjusted earnings before interest, taxes, depreciation and amortization is expected to be flat in the first year, and then grow annually after that as integration costs diminish and revenue scales.

The transaction is expected to close in the first quarter of next year.


Write to Adriano Marchese at adriano.marchese@wsj.com


(END) Dow Jones Newswires

11-11-22 0828ET