Sovos, a global tax software provider has acquired Fit Sistemas, a Brazil-based provider of cloud-based regulatory reporting and electronic invoicing solutions. With this acquisition, Sovos extends its “sistema público de escrituração digital” (SPED) reporting services and clarifies its view of the Brazilian tax environment, with a complete “software-as-a-service” (SaaS) option for modern tax challenges.
“Building on previous cloud acquisitions, Fit Sistemas deepens Sovos’ commitment to Brazil and adds solutions for tax compliance challenges facing companies operating throughout Latin America and around the world,” said Sovos CEO Andy Hovancik. “Sovos is the only company to provide a scalable, end-to-end solution capable of ensuring e-invoicing compliance in Brazil and more than 65 other countries.”
“Brazil’s tax administration rolled out the SPED reporting rules in 2008 to digitize paper invoices and records, but the rules change frequently and create complex obligations for businesses,” added Paulo Castro, Brazil country manager at Sovos. “Managing those shifting rules becomes even more difficult for businesses reliant on legacy on-premise solutions, and cloud-first options are increasingly in demand. Fit Sistemas’ 100% SaaS solutions deliver deep customer value and complement Sovos’ offerings for Brazil.”
Sovos is owned by Hg, the London-based specialist private equity investor focused on software and service businesses, and TA Associates. EY served as financial advisor to Sovos, and Veirano Advogados provided legal counsel. Fortezza Partners served as financial advisor to Fit Sistemas, and Candido Martins Advogados provided legal counsel.