Thomson Reuters Corp. has announced the acquisition of SafeSend, a cloud-based provider of technology solutions tailored for tax and accounting professionals, for a cash consideration of $600 million. The Toronto-headquartered data and content conglomerate revealed the deal in a statement on Thursday.

SafeSend, based in Ann Arbor, Michigan, specializes in automating the final stages of tax return preparation and delivery. The company has a workforce of 235 employees supporting services used by numerous accounting firms throughout the United States. Thomson Reuters highlighted that SafeSend’s technology is utilized by 70% of the country’s top 500 accounting firms.

“This acquisition underscores our commitment to addressing the evolving challenges faced by tax professionals and taxpayers alike,” said Elizabeth Beastrom, the president of tax, audit, and accounting professionals at Thomson Reuters. She further emphasized the benefits of combining SafeSend’s cutting-edge technology with Thomson Reuters’ existing solutions, stating, “By integrating SafeSend's innovative technology with our existing solutions, we're simplifying tax preparation workflows and meeting the dynamic demands of businesses we serve to help them thrive in an increasingly complex tax landscape.”

Thomson Reuters projects that SafeSend will generate approximately $60 million in revenue by 2025, excluding adjustments related to acquired deferred revenue. The company also anticipates that SafeSend will sustain an annual growth rate exceeding 25% in the coming years.

Andrew Hatfield, the co-founder of SafeSend, expressed his perspective on the acquisition in a statement. “Since we founded the company, we've focused on listening to our customers and building solutions to simplify the tax process,” he said. In a blog post published last month, Hatfield elaborated on the significant transformations currently occurring within the tax and accounting profession. He pointed to factors such as an increasingly complex regulatory environment and rapidly advancing technology as driving forces behind what he described as “one of its most significant periods of change in decades.”

Hatfield also predicted that the industry would see increased automation, the consolidation of technology platforms into “all-in-one” solutions, and a growing reliance on artificial intelligence and machine learning in the years ahead.

Steve Dusablon, another co-founder of SafeSend, echoed Hatfield’s enthusiasm about the acquisition. He remarked, “Becoming a part of Thomson Reuters will enable us to accelerate product development efforts and realize our shared vision of an end-to-end tax workflow solution.”

Thomson Reuters serves a wide array of professionals in sectors such as legal, tax, accounting, compliance, government, and media, providing content, data, and other forms of intelligence. It is noteworthy that the Reuters news outlet operates under the broader Thomson Reuters umbrella.

Thomson Reuters did not disclose details about legal counsel involved in the acquisition.