William Cobb, CEO of H&R Block Inc., vowed this afternoon that the company will fight to complete its planned acquisition of TaxACT, which federal officials have sued to prevent.
Cobb said during a conference call with analyst that the merger would help Block compete with Intuit Inc., whose TurboTax brand “dominates” the digital tax preparation market.
The U.S. Department of Justice has said Intuit controls 62.2 percent of the digital market and that a merger between Block and TaxACT would create a “virtual duopoly” in which competition, innovation and consumers would suffer.
TaxACT and Block have agreed to “vigorously pursue” their merger, valued at $287.5 million, despite the government opposition.
Cobb said a hearing in the case is expected by the end of September.