FiscalReps, a provider of insurance premium tax compliance solutions, has been bought by Sovos for an undisclosed amount.
Sovos, a tax compliance and reporting software business owned by private equity firms HgCapital and Vista Equity Partners, has bought the UK-based company to expand its European operations.
FiscalReps provides Insurance Premium Tax (IPT) compliance solutions to more than 400 businesses, including 20 of the top 50 insurance companies in Europe. It helps to calculate and file IPT in 16 European countries, giving businesses a ‘more automated and more accurate solution’ for filing thousands of IPT reports.
IPT compliance has become an increasingly problem in recent years as it requires insurers to comply with 90 unique taxes and more than 500 complex forms in the European region alone.
Sovos vice president of corporate development John Gledhil 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.
“As that trend continues to accelerate, Sovos is committed to adding market-leading solutions, like FiscalReps, to solve our clients’ biggest compliance challenges on a single platform and from a single source of data.”
The deal is part of Sonvos’ approach of acquiring leading software businesses around the globe and integrating them into its global platform. It recently bought Paperless, a leading software solution for a similar compliance challenge, real-time VAT reporting.
The Santiago, Chile-based business expanded Sonvos’ real-time government reporting capabilities with electronic receipts and consumer point-of-sale tax reporting, while also extending its presence in Latin America.
Over the last five years, investments in RegTech companies have grown by 38.5% (CAGR) according to data by FinTech Global. Last year a record $678m was invested in 70 companies, compared to $185m in 32 companies in 2012.
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