Global Tax and Regulatory Compliance Leader Sovos Increases Customer Base by 164% in First Quarter of Fiscal Year

November 2, 2021

FY21 product milestones, record number of strategic acquisitions fueling momentum into FY22

BOSTON – November 2, 2021 – Today, global tax software provider Sovos announced it has expanded its customer base 164% through acquisitions and organic growth since the beginning of its fiscal year in July. While the digitization of tax and continuous transaction controls (CTCs),  like e-invoicing, have affected large enterprises for years, those compliance burdens are increasingly felt by small and medium-sized businesses (SMBs), as well as local subsidiaries of global companies. As a result, Sovos’ new customers include multi-nationals, mid-market brands, and a rapidly growing segment of SMBs. 

The Evolution of Global Tax Compliance

Governments around the world are compelling digital transformation in pursuit of real-time or near real-time visibility into business transactions to increase revenue streams and close tax gaps. Throughout the Americas, across Europe and beyond, the converging e-transformation of government and business makes it nearly impossible for companies of any size to keep pace with ever-changing mandates without technology-enabled services and solutions. 

In order to fulfill its mission to Solve Tax for Good®, Sovos has built the most complete suite of solutions and services for modern tax through organic innovation and strategic acquisitions, with cloud-based offerings for tax determination, CTC compliance, tax reporting and more. In fiscal year ‘21, Sovos completed seven acquisitions in six countries, a 250% increase in M&A activity over the prior 12 months. This momentum was quickly followed by three completed acquisitions in the first quarter of fiscal year ‘22 and a signed agreement for a fourth.

“Governments are driving the digital transformation of tax, and businesses have no choice but to keep up. This is a challenge that could affect everything from day-to-day operations to strategic IT initiatives. Sovos supports businesses with a global strategy and local expertise to meet the demands of this transformation, and you see that approach in everything we do,”  said Andy Hovancik, CEO, Sovos.

Investing in Secure, Reliable, Scalable and Flexible Cloud Technology

In the second half of calendar year 2021, Sovos continued investment in its products and solutions in order to serve its expanding customer base. For example:

To learn why Sovos is “dependable cloud tax software capable of supporting the compliance and regulatory demands on businesses of every size,” download the recently released “IDC MarketScape: Worldwide SaaS and Cloud VAT Software 2021 Vendor Assessment” and “IDC MarketScape: Worldwide Cloud-Enabled Sales and Use Tax Automation Software for Enterprise 2021 Vendor Assessment” reports.

About Sovos

Sovos was built to solve the complexities of the digital transformation of tax, with complete, connected offerings for tax determination, continuous transaction controls, tax reporting and more. Sovos customers include half the Fortune 500, as well as businesses of every size operating in more than 70 countries. The company’s SaaS products and proprietary Sovos S1 Platform integrate with a wide variety of business applications and government compliance processes. Sovos has employees throughout the Americas and Europe, and is owned by Hg and TA Associates. For more information visit sovos.com and follow us on LinkedIn and Twitter.

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