Accounting Startup Bench Acquired by Employer.com After Abrupt Shutdown
In a surprising turn of events, VC-backed accounting startup Bench has been acquired by Employer.com, a San Francisco-based HR tech company, following an unexpected shutdown that left thousands of customers locked out of their accounts. The acquisition comes at a critical time during tax season, with Bench’s website going offline and causing widespread confusion among its user base.
Bench, which employed over 600 people, had initially advised customers to file for a six-month IRS extension to find alternative bookkeeping services. However, with the acquisition by Employer.com, this step may no longer be necessary for those who choose to continue their services under the new ownership.
While the acquisition price remains undisclosed, Employer.com CEO Jesse Tinsley, who acquired the company’s domain in November for $450,000, has outlined plans to revive Bench’s platform. Customers will soon receive login instructions and can opt to either port their data or continue using the service under Employer.com’s management.
Employer.com, a self-funded company specializing in payroll and onboarding, differs from Bench’s focus on accounting and tax services. This acquisition marks another step in Employer.com’s strategy of actively acquiring businesses in the HR space.
The impact on Bench employees remains uncertain, with Employer.com recalling many, but not all, staff members to ensure service continuity. Some former Bench employees are currently seeking new employment opportunities.
Employer.com has assured Bench customers that they can expect to work with familiar in-house bookkeepers and receive continued high-quality service, with potential enhancements in the future. The company aims to leverage its resources to stabilize Bench’s services and maintain its customer base.
A Bench board member confirmed the acquisition to TechCrunch, highlighting the critical nature of this transition period for maintaining customer trust and service quality.
As the situation unfolds, Bench customers and industry observers will be closely watching how Employer.com manages this acquisition and whether it can successfully integrate Bench’s services into its existing portfolio.
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