Re: CCH buyout of ATX

[Black Bart]

Got a letter from ATX yesterday. I think they're saying they'll go on as is, but it seems a tad vague to me. Quote:

FAQS: (4) How will ATX/Kleinrock operate going forward? Will it remain a separate company or be integrated into CCH?

"After completion of the acquisition, ATX/Kleinrock solutions will join CCH's portfolio of leading research and software solutions as a distinct product line, and CCH will continue to serve the needs of small to mid-sized practitioners with the same attentiveness...blah, blah, blah."

Those "distinct product lines" have a way of occasionally getting altered.

[OldJack]

I would guess that there will be little change in the software for a few years but would expect that the price will go up. CCH's programmers probably know little about the ATX program "MS Visual Basic for applications" language and as such most senior ATX programmers are probably safe for a few years. I have no knowledge of CCH's tax program, but I would expect that ATX has as many or more customers so it would be pretty dumb to completely drop ATX programs. Dropping the name is another story but increasing price is pretty much a sure thing.

[Snaggletooth]

Phone Contact

I had a guy call me yesterday from ATX. Until 2003, I was a loyal ATX customer, and I guess they still had me in queue on some customer list. Supposedly, ATX has grown to the #1 tax software in terms of numbers - over 52,000 customers annually.

The guy said ATX would remain intact. There will be no tampering with the operation of the company, and CCH would remain a parent company only. This could be true to a degree. And it could be just what their staff is telling customers. And it could be what CCH is telling the staff of ATX employees. At this point, they would be ill-advised to tell anything different.

It is appropriate to go a step further with the ATX story. Until some point in 2004, ATX was owned privately by a group headed by a CPA, Glynn Willett. The real credit for developing the software in such accurate and user-friendly format should be attributable to the private owners. Explosive growth in numbers of subscribers. Even though I left them, I do miss using ATX, and thought their format was the best out there. The 2003 tax year was a disaster for them, customer-service wise.

Now, less than 2 years later, they are selling out again. Is there another untold story? Or were the interim owners simply "scouts" for CCH?

[rosieea]

This is an interesting marriage. CCH & Kleinrock directly compete with each other, but the tax software is worlds apart. CCH has a package that costs over $10K, while ATX is at the other end of the spectrum. I think we'll see a consolidation of the research and publication services, while CCH may well be interested in keeping ATX distinct in order to capture the small practice market.