Sovos is a Vista portfolio company, the same Vista involved in the Advanced Computer Group deal mentioned elsewhere in this newsletter. The transactional tax market is getting very competitive. In October, Avalara hired Richard Asquith as VP of global tax compliance as it moves more into the VAT market. With a fresh $100 million investment, it then purchased the online service, VATLive. Avalara's backers include Warburg Pincus and Battery Ventures, so private money sees potential in this market. In regards to the Vista action, each of its tax companies is using the tagline "A Sovo Compliance Company" along with its previous name. Hovancik joined after serving as president and COO of the former Solarsoft Business Systems from April 2011 through December 2012. Epicor Software purchased Solarsoft in October 2012.
TAX COMPANIES BECOME SOVOS Featured
Tax software companies Convey Compliance Systems, Taxware, and VAT Resource have become Sovos Compliance. This is one of those deals brought about by private equity. The convergence of the businesses began in December 2012 when Vista Equity Partners purchased Taxware and brought in Andy Hovancik as CEO. Taxware purchased VAT Resource a year ago and the merged Convey and Taxware during the summer. The combination brings together business that offer 1099 reporting, sales and use tax and value-added tax determination and compliance.
