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Bench to be Acquired, After Abrupt Shut Down
In a stunning turn of events, Bench, the VC-backed accounting startup that left thousands of customers locked out of their accounts after its sudden shutdown last week, will be acquired by Employer.com, TechCrunch has exclusively learned.
According to multiple sources familiar with the matter, the acquisition price remains undisclosed. However, it appears that the acquisition is a done deal, with Employer.com poised to revive Bench’s platform and provide customers with login instructions imminently.
As previously reported by TechCrunch, Bench’s sudden shutdown on December 27 had left thousands of small business owners in a state of panic, as they were unable to access their accounting and tax documents at the onset of tax season. Employees were equally affected, as many took to LinkedIn to express their concerns about job security after being informed of the shut down.
Following the acquisition, Employer.com has assured customers that they will be able to continue working with “the same expert in-house bookkeepers they know and trust.” However, it remains unclear how Bench’s extensive workforce will integrate into Employer.com’s operations, given the stark difference in focus between the two companies. As previously reported, Bench employed over 600 people.
According to sources close to the matter, a large number of these employees are being called back to work to ensure continuity and maintain services for existing customers. This raises questions about potential redundancies or reorganization within Employer.com’s ranks.
Bench’s website remains offline at this time, with only a brief message informing users that they will be provided with instructions on how to access their data imminently. It is unclear when the platform will be restored to its full capacity.
In related news, Employer.com has announced plans to leverage Bench’s expertise in accounting and tax services to expand its own offerings in the HR technology space. The acquisition marks a significant shift for the company, which has historically focused on human resources management solutions.
In light of these developments, TechCrunch will continue to monitor the situation closely and provide updates as more information becomes available.
This article is part of our Startups coverage, where you can learn more about the latest news and trends in the startup ecosystem.
Source: techcrunch.com
