Bench, the VC-backed accounting startup that left hundreds of shoppers locked out of their accounts after it abruptly shut down final week, will probably be acquired by Employer.com for an undisclosed value in a last-minute deal, TechCrunch has solely realized.
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 officer Matt Charney instructed TechCrunch the corporate will revive Bench’s platform and supply directions for patrons to log in and procure their information.
Clients will probably be given the selection to port their information or hold their service below new possession, Charney instructed TechCrunch. Bench’s earlier suggestion to file for a six-month extension with the Inside Income Service to search for a brand new bookkeeper is now not wanted if prospects determine to remain on, Employer.com confirmed.
Bench’s web site, which continues to be offline on the time of writing, beforehand touted greater than 35,000 “American small enterprise house owners” on its platform, in keeping with an archived copy. (Publish-publication, Employer.com instructed TechCrunch that Bench has roughly 12,000 prospects.) Bench’s web site at present reads: “Extra info on learn how to proceed your companies will probably be accessible quickly.” The startup’s abrupt shutdown on Friday brought on 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 title 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 put up on December 11, Tinsley stated that the corporate is “nonetheless buying firms” within the HR area. Employer.com will not be VC-backed and is totally self-funded, Charney instructed TechCrunch.
In a press release saying the acquisition, Employer.com stated Bench prospects can anticipate to proceed “working with the identical skilled in-house bookkeepers they know and belief.”
“This acquisition ensures that Bench prospects can proceed counting on the identical high-quality service they’ve all the time obtained, whereas additionally opening the door to future enhancements and capabilities powered by Employer.com’s in depth sources,” Employer.com’s assertion stated.
That could be difficult in apply. Bench employed greater than 600 individuals, in keeping with its web site, a few of whom posted on LinkedIn after the shutdown discover that they have 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 individuals officer, instructed TechCrunch.
TechCrunch archived Bench’s unique shutdown discover from December 27 beneath:
