Bench, the VC-backed accounting startup that left 1000’s of shoppers locked out of their accounts after it out of the blue shut down final week, will probably be acquired by Employer.com for an undisclosed value in a last-minute deal, TechCrunch has solely discovered.
The San Francisco-based HR tech firm Employer.com focuses on payroll and onboarding, in distinction to Bench, which makes a speciality of accounting and tax. Employer.com’s chief advertising and marketing officer Matt Charney instructed TechCrunch the corporate will revive Bench’s platform and supply directions for patrons to login and acquire their knowledge imminently.
Clients will probably be given the selection to port their knowledge or maintain their service underneath new possession, Charney instructed TechCrunch. Bench’s earlier advice to file for a six month extension with the Inner Income Service to search for a brand new bookkeeper is not wanted if prospects determine to remain on, Employer.com confirmed.
Bench’s web site, which remains to be offline on the time of writing, beforehand touted greater than 35,000 “American small business owners” on its platform, in line with an archived copy. (Put up-publication, Employer.com instructed TechCrunch that Bench has roughly 12,000 prospects.) Bench’s web site at the moment reads: “More information on how to continue your services will be available soon.” The startup’s abrupt shutdown on Friday prompted chaos, with prospects discovering themselves locked out of their accounts proper as tax season is about to start, and emails from TechCrunch to Bench staff bouncing again.
TechCrunch confirmed the acquisition with a Bench board member. Neither Bench nor Employer.com would touch upon the acquisition value.
Employer.com is a brand new firm: Its CEO, Jesse Tinsley introduced his acquisition of the area identify in November for about $450,000. Tinsley is behind a bunch of HR, onboarding, and recruiting-related companies, together with Recruiter.com and BountyJobs. In a publish on December 11, Tinsley mentioned that the corporate is “still acquiring companies” within the HR area. Employer.com shouldn’t be VC-backed and is totally self-funded, Charney instructed TechCrunch.
In an announcement asserting the acquisition, Employer.com mentioned Bench prospects can anticipate to proceed “working with the same expert in-house bookkeepers they know and trust.”
“This acquisition ensures that Bench customers can continue relying on the same high-quality service they’ve always received, while also opening the door to future enhancements and capabilities powered by Employer.com’s extensive resources,” Employer.com’s assertion mentioned.
Which may be difficult in observe. Bench employed greater than 600 folks, in line with its web site, a few of whom posted on LinkedIn after the shutdown discover that they had been now on the lookout for work. Bench is now beginning to name “many” – however not all – of its staff again to work to make sure continuity, Jennifer Bouyoukos, Bench’s chief folks officer, instructed TechCrunch.
TechCrunch archived Bench’s unique shutdown discover from December 27 beneath:
