Cinven snaps up tax preparation software provider TaxAct for $720M • TechCrunch
TaxAct offers a suite of online tax tools and products, aimed at individuals, small businesses, and professional tax preparers. The company’s history goes back nearly 25 years, when it was founded in Cedar Rapids, Iowa, initially as 2nd Story Software. In the intervening years, it expanded into the cloud and was eventually acquired For $287.5 million by Blucora (then known as InfoSpace) in 2012 before officially changing its name to TaxAct the following year.
Cinven, for her part, was on to something from buying spree at recent days With some Five acquisitions to her name Last year alone. However, Cinven also became embroiled in controversy after the UK competition watchdog issued by with several Millions of dollars in fines During price manipulation practices Including medicines sold to the NHS.
Separately, senfin also Invest an undisclosed amount At another tax preparation software company called Drake Software back in 2021, Cinven now plans to push both Drake and TaxAct together into a new holding company that will operate as a single entity that includes professionals and consumers.
The deal is expected to close by the end of this year, with both Drake and TaxAct continuing to operate under their own brand and the current CEOs remaining at the helm.