The acquisition will add FiscalReps's indirect tax solution to Sovos’s Intelligent Compliance Cloud and expand on its team to support increased demand for tax and reporting automation in the region.
According to Mike Stalley, CEO of FiscalReps, the addition of FiscalReps to Sovos’s cloud software platform takes the solution “one step further, setting the stage for a unique global solution for the insurance market and accelerating software innovation in insurance premium tax (IPT) compliance”.
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. Sovos explained that as governments turn to technology to clamp down on non-compliance, businesses have quickly turned to automation.
FiscalReps provides businesses with a more automated solution to file IPT reports.
Stalley said: “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.”
He added: “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 acquisition of FiscalReps marks Sovos’s second major deal in three months.
Sovos has been acquiring software businesses around the world and integrating them into its global platform, an approach that John Gledhill, vice president of corporate development, suggested is “critical to keeping multinational businesses ahead of disruptive tax and regulatory reporting requirements”.
Gledhill said: “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.”