Cinven snaps up tax preparation software program supplier TaxAct for $720M

London-based personal fairness agency Cinven has introduced plans to amass on-line tax preparation software program supplier TaxAct in an all-cash deal price round $720 million.

TaxAct gives a spread of on-line tax instruments and merchandise, concentrating on people, small companies, {and professional} tax preparers. The corporate’s historical past could be dated again almost 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 called 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 shopping for spree of late with some 5 acquisitions to its title up to now yr alone. Nonetheless, Cinven has additionally develop into embroiled in controversy after the U.Okay.’s competitors watchdog issued it with a number of multimillion greenback fines over price-gouging practices involving medicine bought to the NHS.

Individually, Cinven additionally invested an undisclosed quantity 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 may function a single entity spanning professionals and customers.

The transaction is predicted to shut by the top of this yr, with each Drake and TaxAct persevering with to function underneath their very own manufacturers and their present CEOs remaining on the helms.

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