Sovos acquires FiscalReps
Global tax compliance and reporting software company Sovos has announced that it has acquired U.K.-based FiscalReps, Europe’s leading solution for Insurance Premium Tax (IPT) compliance, adding a critical indirect tax solution to its Intelligent Compliance Cloud and expanding its team to support increased demand for tax and reporting automation in the region.
“Insurers across Europe trust FiscalReps because the solution safeguards their businesses from mounting risks from governments looking to close longstanding gaps in IPT compliance,” said Sovos CEO Andy Hovancik. “The addition of FiscalReps presents an opportunity to better prepare insurers for the digital future of tax compliance and reporting, while at the same time adding a talented team to support our clients in the region.”
Similar to other indirect tax regulations, IPT compliance has become increasingly burdensome in recent years, requiring insurers to comply with 90 unique taxes and more than 500 complex forms in the European region alone. As governments turn to technology to clamp down on non-compliance, businesses have quickly turned to automation.
Through a combination of managed services and software, FiscalReps helps more than 400 businesses, including 20 of the top 50 insurance companies in Europe, calculate and file IPT in 27 European countries. FiscalReps gives those businesses a more automated and more accurate solution for filing thousands of IPT reports each year.
The addition of FiscalReps to Sovos’ cloud software platform takes the solution one step further, according to FiscalReps CEO Mike Stalley, setting the stage for a unique global solution for the insurance market and accelerating software innovation in IPT compliance.
“The acquisition by Sovos is a great opportunity for our insurance clients, who will now have a truly global solution for all of their premium tax and regulatory reporting needs,” Stalley said. “With a proven track record in delivering tax technology solutions globally, the Sovos strategy aligns perfectly with FiscalReps’ ambitions to remain the market leader in this increasingly complex and challenging environment. We look forward to being part of the Sovos team and contributing to the success story.”
The FiscalReps acquisition is the second major deal in three months for Sovos, which recently announced its acquisition of Paperless, a leading software solution for a similar compliance challenge, real-time VAT reporting. Sovos has been acquiring leading software businesses around the globe and integrating them into its global platform, an approach Sovos VP of Corporate Development John Gledhill says is critical to keeping multinational businesses ahead of disruptive tax and regulatory reporting requirements.
“The IPT market is another great example of governments pushing businesses toward global software automation by getting aggressive on enforcement of regulations to collect tax revenue,” Gledhill said. “As that trend continues to accelerate, Sovos is committed to adding market-leading solutions, like FiscalReps, to solve our clients’ biggest compliance challenges on a single platform and from a single source of data.”
The terms of the deal were not disclosed. Sovos is owned by London-based HgCapital and Vista Equity Partners. Burness Paull LLP provided legal counsel for Sovos. Menzies LLP served as financial advisor to FiscalReps and Taylor Wessing LLP provided legal counsel.