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Blucora: Not Right Time to Sell TaxAct

Blucora says it not the right time to sell its TaxAct software business as demanded by an insurgent investor group. Blucora reports “long before Ancora began buying shares, Blucora’s Board and management had begun considering such scenarios with independent financial advisors.”

The letter to shareholders from  management suggests that the company’s leadership is willing to consider such a sale, but did not say if a transaction is likely. Blucora noted the impact of the pandemic on of the 2020 and 2021 tax seasons. “We believe Blucora’s tax preparation business has significant performance upside for which we would not get credit in a sale at this time,” the document reads.

Ancora has fielded four candidates for the Blucora directors, including its CEO Fred DiSanto. Blucora said DiSanto’s company is a direct competitor to Blucora’s wealth management business.

Ancora has argued there is no synergy between TaxAct and the wealth management business.

The letter was part of a proxy mailing for the election which will be held on April 24

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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