Tax compliance automation solutions provider Sovos announced plans to expand into the Asia-Pacific and Middle East regions, starting with the acquisition of the Tax Technology ASP business unit from India-based IRIS Business Services (not to be confused with the U.K.-based IRIS Software Group or the U.S.-based Iris Software), which specializes in regulatory solutions. Sovos was advised during this acquisition by Khaitan & Co and Burness Paull. The terms of the deal were not disclosed.
The acquisition not only gives Sovos a foothold in new markets but also accelerates the company’s ability to establish compliance solutions in new jurisdictions. In addition, IRIS’ tax tech product portfolio brings complementary capabilities to the Sovos Indirect Tax Suite for enterprises, including modules for notice and litigation management, tax analytics as well as e-way bill (electric transport) compliance.
Specifically, IRIS’ modules for notice and litigation management with Sovos Indirect Tax Suite will assist in compliance tasks for multinational companies; IRIS’ E-way billing (electric transport) compliance will help companies streamline state-specific permits to stay compliant with GST laws; and a team of local experts will help customers gain immediate access to Asia Pacific and Middle East countries.
“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.”
The new technology will become part of the Sovos platform, according to Sovos CEO Kevin Akeroyd in an email. This will include moving the IRIS GST branding to Sovos over the next year.
“Our power comes from uniting leading solutions under one name to deliver complete, end-to-end compliance coverage,” he said.
Not only will Sovos retain the entire IRIS team, Akeroyd said the company intends to materially scale and grow the team, as the acquisition brings local experts from IRIS into Sovos, broadening its presence in APAC and the Middle East. The entire team from IRIS’s Tax Technology ASP business unit has joined Sovos, including its general manager, Gautam Mahanti.
Since Sovos has long partnered with IRIS, the Sovos and IRIS Tax Technology ASP teams already sell combined, global solutions to their multinational customers. Akeroyd said this positions them for a smooth transition with no service disruption.
“For customers, it’s business as usual, only better,” he said in an email. “Systems will continue operating as normal while benefiting from the enhanced capabilities this acquisition brings.”
