Cinven eyes tax software growth with $720m acquisition

Cinven has bought a US tax software business for roughly $720m.

The private equity house has acquired TaxAct from US tax preparation company Blucora in a bid to create a “full-service tax solutions provider for professionals and consumers”.

The London-based buyout shop said that it plans to put the business under a single holding company with its existing portfolio firm Drake Software, which it acquired last year.

TaxAct is a provider of digital, do-it-yourself (DIY) tax filing assistance software and services that was founded in 1998.

Daniel Garin, senior principal at Cinven, said: “Cinven has followed TaxAct for many years. This acquisition allows Cinven to back two leading management teams, building a stronger combined company that can win in an attractive market with substantial potential for future growth.”

The deal adds to Cinven’s exposure in the TMT space, which is one of six sectors that the PE group focuses on, alongside business services, consumer, financial services, healthcare and industrials

The deal is expected to close before the end of 2022, subject to regulatory approvals and other customary closing conditions.

Advisers to Cinven on the deal included Evercore, J.P. Morgan, and Ropes & Gray.

Dom Morea will remain president and chief executive of Drake Software and Curtis Campbell will continue to lead the TaxAct business. The businesses will continue to operate under their own brands within the holding company.

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