London-based personal fairness agency Cinven has announced plans to accumulate on-line tax preparation software program supplier TaxAct in an all-cash deal value round $720 million.
TaxAct gives a variety of on-line tax instruments and merchandise, focusing on people, small companies {and professional} tax preparers. The corporate’s historical past will be dated again practically 25 years, when it was based out of Cedar Rapids, Iowa, initially as 2nd Story Software program. Within the intervening years, it expanded to the cloud and was finally acquired for $287.5 million by Blucora (then often known as InfoSpace) in 2012 earlier than formally altering its title to TaxAct the next yr.
Cinven, for its half, has been on one thing of a buying spree of late with some 5 acquisitions to its name prior to now yr alone. Nevertheless, Cinven has additionally turn into embroiled in controversy after the U.Okay.’s competitors watchdog issued it with a number of multimillion-dollar fines over price-gouging practices involving medication bought to the NHS.
Associated to the deal it introduced at present, nonetheless, Cinven invested an undisclosed amount in one other tax preparation software program firm known as Drake Software program again in 2021, with Cinven now planning to push each Drake and TaxAct collectively into a brand new holding firm that can function a single entity spanning professionals and customers.
The transaction is predicted to shut by the tip of this yr, with each Drake and TaxAct persevering with to function below their very own manufacturers and their present CEOs remaining on the helms.
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