BOSTON – The Department of Justice is trying to halt HR Block’s plans to acquire the creator of TaxACT software, saying the deal would leave just two major competitors in the do-it-yourself tax preparation market.
The agency on Monday filed an antitrust lawsuit arguing that the transaction would eliminate a strong rival of HR Block and Intuit Inc., maker of such programs as Quicken and TurboTax.
Regulators say those two companies and TaxACT account for 90 percent of tax preparation software sales, with HR Block and TaxACT second and third in the market behind Intuit.
“TaxACT is an aggressive competitor in the market, and is feared” by the other two companies, Christine Varney, an assistant attorney general, told reporters on a conference call.
HR Block Inc. announced plans in October to pay $287.5 million in cash to acquire 2SS Holdings Inc., the parent of 2nd Story Software, the privately held company that created TaxACT. HR Block said it would combine its HR Block At Home digital business and the TaxACT business into a single unit led by TaxACT management, but will continue to sell both brands.
The Justice Department says the deal would create an opportunity for HR Block to coordinate with Intuit, based in
Read More from the Article Source: Full Article
