Tuesday, May 24, 2011

Summary Box: DOJ tries to stop H&R Block deal (AP)

GOVERNMENT INTERVENES: The Department of Justice is trying to prevent H&R Block Inc. from acquiring the creator of TaxACT Software. The government on Monday filed an antitrust lawsuit, arguing the deal would leave just two major competitors in do-it-yourself tax preparation.

PROPOSED TIE-UP: H&R Block announced plans in October to pay $287.5 million in cash to acquire the parent of privately held 2nd Story Software, which created TaxACT.

MARKET COMPETITION: Regulators say Intuit Inc., H&R Block and TaxACT account for 90 percent of tax prep software sales. Intuit is the market leader, followed by H&R Block and TaxACT.


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