Sovos, a always-on tax compliance company, has announced it has entered into a definitive agreement to acquire the Tax Technology ASP business unit from IRIS Business Services, an APAC-based company providing compliance solutions to regulators, enterprises, and financial institutions worldwide.
"Every compliant enterprise must have a global strategy for e-invoicing mandates and VAT compliance," said Kevin Akeroyd, CEO, Sovos. "We are the only provider with a truly global tax compliance platform. With the IRIS GST acquisition, we just extended our leadership and dramatically enhanced the immediate value for customers and partners worldwide."
The acquisition strengthens Sovos’ competitive position in the global marketplace by expanding its coverage into key Asia Pacific and Middle East countries. The addition broadens Sovos’ immediate market presence and accelerates its ability to establish compliance solutions in new jurisdictions worldwide. IRIS’ taxtech product portfolio also complements the Sovos Indirect Tax Suite for enterprises, with modules for notice and litigation management, tax analytics, and e-way bill (electric transport) compliance.
"Establishing a strong Asia Pacific footprint has been a key strategic priority for Sovos," said Alex Pavel, Managing Director APAC at Sovos. "This move positions Sovos to serve the rapidly growing Asia Pacific market more effectively for both businesses based here and conducting operations in this region."
Countries across APAC and the Middle East represent some of the world’s most complex tax environments, with Continuous Transaction Controls (CTC) and GST systems requiring sophisticated compliance solutions. By combining IRIS’ capabilities with the Sovos Global Tax Compliance Cloud, the companies will offer a one-stop experience for multinationals managing global compliance.
Sovos and IRIS have maintained a long-standing partnership, which will support a seamless transition. With thousands of established relationships and teams of local experts, customers are expected to see immediate benefits from the deal.
"We are excited about the synergies this business combination brings. We believe it will unlock opportunities to add value more rapidly to our customers in APAC and globally," said Gautam Mahanti, Business Head of IRIS’ Tax Tech business.
Sovos was advised during the acquisition by Khaitan & Co and Burness Paull.
