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What Will Happen To Drake?


Lee B

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I don't see how buying TaxAct impacts the Drake software.

Intuit has Turbotax, Lacerte, Proconnect and ProSeries.

Wolters Kluwer has Tax Wise, ATX, Access and Prosystems. WK bought a few other tiny ones to boost their footprint if I recall correctly.

Thompson Reuters has GoSystems and UltraTax.

 

I would expect Drake to make another purchase down the line like TaxSlayer. I'd also expect a consumer accounting software program.

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Just to clarify, Drake did not buy TaxAct. A Cinven umbrella holding company owns Drake and TaxAct.

According to Cinven's website, they own equity positions in 140 different businesses around the world

and on average they hold their investments 4 to 5 years. Cinven's mindset is a strategy of maximizing their investment,

which is not an operating strategy.

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  • 1 month later...

In essence the Cinven Holding Company that now owns both Drake and Tax Act bought out the Drake family back in early 2021.

"Drake Software has appointed Dominic (Dom) Morea as President and CEO. Interim CEO Euan Menzies will continue in his role as Chairman of Drake Software.

Dom Morea comes to Drake Software with a strong background of more than 20 years’ experience in FinTech, working with Fiserv and First Data Corporation. He served most recently as Global Head of Fiserv’s Prepaid business. The Fiserv Prepaid business is one of the world’s largest payment service providers, supporting billions of transactions annually across the globe and millions of consumer/app users."

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3 hours ago, cbslee said:

In essence the Cinven Holding Company that now owns both Drake and Tax Act bought out the Drake family back in early 2021.

"Drake Software has appointed Dominic (Dom) Morea as President and CEO. Interim CEO Euan Menzies will continue in his role as Chairman of Drake Software.

Dom Morea comes to Drake Software with a strong background of more than 20 years’ experience in FinTech, working with Fiserv and First Data Corporation. He served most recently as Global Head of Fiserv’s Prepaid business. The Fiserv Prepaid business is one of the world’s largest payment service providers, supporting billions of transactions annually across the globe and millions of consumer/app users."

"DURHAM, N.C., June 16, 2022 /PRNewswire/ -- BioAgilytix Labs, LLC ("BioAgilytix"), a leading global contract research organization focused on supporting pharmaceutical and biotech partners in all phases of drug development, today announces the appointment, effective immediately, of Euan Menzies as Chairman and CEO."

So the current CEO and previous Interim CEO did not come from either the Accounting or Tax World.

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On 12/24/2022 at 5:12 PM, cbslee said:

So the current CEO and previous Interim CEO did not come from either the Accounting or Tax World.

That is not a good thing, and I'll watch Drake carefully as they move forward. Since I am slowly scaling back, it may be worth sticking with them just so as not to need to deal with a new program and vendor for fewer returns every year. Plus any new vendor may also get bought out by non-acctg, non-tax, buyers.

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I have no insider knowledge.  What I do know is Drake bought a now dead programming tool which many used to use.  IIRC, it was because they depended on it for their own software.  Likely, whatever happens next (if it has not already), the odds are good they are or have been working furiously on rewriting their code to use whatever programming tools the buyer is comfortable with.

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I have no insider knowledge.  However, Adam bought a programming tool several years back, and as of at least mid 2022, was still occasionally participating in an online programmers forum (at least with a handle looking like his name).  Unlikely this could have been done for anything other than self protection, to maintain a tool they used in house.  Now, no idea after the sale/purchase, and a quick search did not find anything relevant in the programmer's forum.

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