H&R Block (HRB) Comments on DOJ Decision for TaxACT Merger
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H&R Block, Inc. (NYSE: HRB) announced in October 2010 its plans to acquire all the outstanding shares of 2SS Holdings, Inc., the Cedar Rapids, Iowa-based developer of TaxACT digital tax preparation solutions. This strategic merger would combine the H&R Block At Home digital business with TaxACT to form a single unit led by the TaxACT management team in Cedar Rapids, Iowa. Both brands would continue to operate in the marketplace. Today, the Department of Justice (DOJ) filed a civil antitrust lawsuit to block the proposed acquisition.
"The Department of Justice today made a determination to stifle smart business growth," said William C. Cobb, H&R Block's president and CEO. "We're especially disappointed with this decision knowing that the DOJ rejected guarantees that we would not raise TaxACT's prices. Contrary to the DOJ's position, the synergies and enhanced functionalities realized from this merger would create a more competitive landscape for tax preparation. We continue to believe this merger makes sense, is pro-competitive and will greatly benefit consumers," said Cobb.
H&R Block will explore all legal options with regard to this matter.
"The Department of Justice today made a determination to stifle smart business growth," said William C. Cobb, H&R Block's president and CEO. "We're especially disappointed with this decision knowing that the DOJ rejected guarantees that we would not raise TaxACT's prices. Contrary to the DOJ's position, the synergies and enhanced functionalities realized from this merger would create a more competitive landscape for tax preparation. We continue to believe this merger makes sense, is pro-competitive and will greatly benefit consumers," said Cobb.
H&R Block will explore all legal options with regard to this matter.
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