Bench, the venture capital-backed accounting startup that recently locked out thousands of customers after its abrupt closure last week, is set to be acquired by Employer.com for an undisclosed amount, as reported exclusively by StartupSuperb.
Employer.com, based in San Francisco, is an HR technology firm focused on payroll and onboarding services, contrasting with Bench’s expertise in accounting and tax services. Matt Charney, the chief marketing officer of Employer.com, informed StartupSuperb that the company intends to restore Bench’s platform and will soon provide guidance for customers to access their accounts and retrieve their data.
Customers will have the option to transfer their data or continue using their services under the new ownership structure, as confirmed by Employer.com. Additionally, Bench’s prior suggestion for clients to seek a six-month extension with the Internal Revenue Service to find a new bookkeeper has been rendered unnecessary if customers choose to remain with the company.
At the time of this report, Bench’s website remained offline. Earlier, it claimed to serve over 35,000 small business owners in the United States, as per an archived version. The current version of Bench’s website states: “Further information regarding the continuation of services will be provided shortly.” The unforeseen shutdown on Friday led to significant disruption, with customers unable to access their accounts just as the tax season approaches, and emails sent from StartupSuperb to Bench employees bouncing back.
StartupSuperb confirmed the acquisition with a member of the Bench board. Neither Bench nor Employer.com has disclosed the acquisition amount.
As a new entity, Employer.com’s CEO, Jesse Tinsley, announced the purchase of the domain name in November for approximately $450,000. Tinsley is behind several HR, onboarding, and recruitment-oriented ventures, including Recruiter.com and BountyJobs. In a post from December 11, Tinsley indicated that the company is actively seeking further acquisitions within the HR sector. Employer.com does not have venture capital backing and is entirely self-funded, Charney noted to StartupSuperb.
In a statement regarding the acquisition, Employer.com assured Bench customers they would continue to work with the same trusted in-house bookkeepers.
“This acquisition guarantees that Bench customers can continue to rely on the high-quality service they have always experienced, while also introducing potential future improvements backed by Employer.com’s extensive resources,” stated Employer.com.
Implementing this may prove challenging. According to Bench’s website, the company previously employed over 600 staff members, some of whom took to LinkedIn following the shutdown announcement, expressing their search for new employment. However, Bench is now reaching out to its employees to bring them back and ensure operational continuity, as stated by Jennifer Bouyoukos, Bench’s chief people officer, to StartupSuperb.
StartupSuperb has archived Bench’s original shutdown notification from December 27 below:
A copy of the Bench notice of service closure on December 27, 2024.Image Credits:StartupSuperb (screenshot)