TRI - Thomson Reuters to acquire SurePrep for $500M in cash

• Thomson Reuters ( NYSE: TRI ) has signed a definitive agreement to acquire SurePrep, for $500 million in cash .
• Thomson Reuters expects to receive an estimated tax benefit with a net present value at time of purchase of ~$60M as part of the transaction.
• SurePrep is expected to generate approximately $60M of revenue in 2022 and grow in excess of 20% annually in the next few years.
• Adjusted EBITDA is expected to be neutral in the first year, followed by annual increases thereafter, as integration costs subside and revenue scales.
• Acquired deferred revenue is expected to be a modest free cash flow drag in the first year.
• Closing of the transaction is anticipated to occur in the first quarter of 2023.

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