Cinven is to acquire TaxAct for approximately $720 million with the company set to be combined with Cinven’s existing portfolio company Drake Software under a single holding company to create a full-service tax ecosystem provider.
Cinven is to acquire TaxAct for approximately $720 million with the company set to be combined with Cinven’s existing portfolio company Drake Software (Drake) under a single holding company to create a full-service tax ecosystem provider.
The combined businesses will support their complementary professional tax preparer and individual tax filer customer bases.
TaxAct is one of the leading providers of digital, do-it-yourself (DIY) tax filing assistance software and services, operating in a fast growing subset of the US tax preparation services market. Since it was founded in 1998, TaxAct has grown rapidly, providing DIY tax filing services to more than 85 million individual filers to date, and was the first online software provider to offer free tax filing services.
With a 45-year track record of best-in-class products and services, Drake Software is a provider of comprehensive professional tax preparation software, servicing more than 70,000 tax offices throughout the US. In 2021, Cinven made a significant investment in Drake to support the next stage of the Company’s growth.
Dom Morea will remain President and Chief Executive Officer of Drake Software and Curtis Campbell will continue to lead the TaxAct business, with both companies operating under their own brands within the holding company.
The transaction is expected to close before the end of 2022, subject to regulatory approvals and other customary closing conditions.
Advisers to Cinven on the transaction included: Evercore, J.P. Morgan, and Ropes & Gray LLP.