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Drake Investor Buying TaxAct

 Private equity firm Cinven, which invested in Drake Software last year, has agreed to buy TaxAct for about $720 million.

TaxAct makes professional and consumer tax software, but Cinven talked about combining the consumer business with Drake’s professional software business. Cinvin made what was described only as a “substantial investment” in privately held drake Software in a February 2021 announcement.

TaxAct had revenue of $235.4 million for the first half ended June 30, which included tax season, an increase of 9.5 percent from $215.8 million a year earlier. The bulk, $216. 2 million this year, came from consumer software and represented an increase of 8.4 percent from $199.4 million.

 Revenue from sales to tax professionals was slightly less than $16 million, an increase of 11.8 percent from $14.3 million in the prior year’s first half.

TaxAct is owned by Blucora, which will rename itself as Avantax to concentrate on its wealth management business. Blucora had been under pressure from some investors to sell TaxAct as being unrelated to wealth management.

Bob Scott
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards.  Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He  has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that.  A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind
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