Sovos Acquires Aatrix Software, Expanding Solution and Service Capabilities for SMBs

January 11, 2024

Acquisition comes amid changing regulatory mandates and thresholds for e-Filing across multiple forms

 

ATLANTA – January 11, 2024 – Global compliance technology solutions and services provider Sovos announced today it has acquired North Dakota-based Aatrix Software, a leader in payroll tax forms, extending our leadership in compliance with enhanced capabilities across e-filing for 1099 and ACA 1095 reporting and W2/payroll reporting – increasing our local, state and federal coverage. This acquisition brings together two companies with significant experience and expertise in helping small and medium-sized businesses navigate the complexity of tax and regulatory compliance.

As the regulatory landscape continues to evolve and electronic filing thresholds are lowered, it’s important that SMBs have access to the technology solutions and services they need to ensure proper and timely tax filings to maintain compliance. Together, Sovos and Aatrix will better inform users about changing mandates and provide them easy access to the tools and support they need. Between our two companies, we bring to bear extensive reach in terms of existing partnerships and configurations to work with nearly any platform or systems provider.

“The continued digitization of tax compliance affects businesses of every size, and this is especially true for SMBs,” said Kevin Akeroyd, CEO, Sovos. “Small businesses really are the backbone of the U.S. and we have made a commitment at Sovos to provide them with the technology and support they need. We believe that Aatrix shares these same principles and fits perfectly into our existing portfolio, we are excited to welcome them into the fold.”

Aatrix occupies a strong segment of the market and offers customers a deep level of form functionality as well as a flexible solution that can adapt to their various software offerings. Primarily focused on serving customers through integrations with ERP and payroll providers, Aatrix has been able to leverage its critical business functionality, embedded relationships with payroll partners, and high customer satisfaction to create a highly sticky solution. Its ‘sweet spot’ is primarily mid-sized companies with geographic scale to require multiple tax forms, however the solution has broad appeal across market segments and industries.

“Aatrix has been a leader in helping small and mid-sized businesses meet their compliance obligations
for nearly four decades and we are extremely proud of the work we’ve done and the partnerships we’ve created,” said Steve Lunseth, CEO, Aatrix. “I believe that the timing is right for us to bring our solutions portfolio under the Sovos umbrella to create even stronger opportunities for our customers, partners and employees. Our combined expertise and reach will assure that any business that wants to streamline their filing process will have access to the best people and solutions on the market.”

The terms of the deal were not disclosed. Sovos is owned by Hg, the London-based specialist private equity investor focused on software and service businesses, and TA Associates. Holland & Hart LLP served as legal advisor to Sovos.

 

About Sovos

Sovos is a global provider of tax, compliance and trust solutions and services that enable businesses to navigate an increasingly regulated world with true confidence. Purpose-built for always-on compliance capabilities, our scalable IT-driven solutions meet the demands of an evolving and complex global regulatory landscape. Sovos’ cloud-based software platform provides an unparalleled level of integration with business applications and government compliance processes.

More than 100,000 customers in 100+ countries – including half the Fortune 500 – trust Sovos for their compliance needs. Sovos annually processes more than three billion transactions across 19,000 global tax jurisdictions. Bolstered by a robust partner program more than 400 strong, Sovos brings to bear an unrivaled global network for companies across industries and geographies. Founded in 1979, Sovos has operations across the Americas and Europe, and is owned by Hg and TA Associates. For more information visit http://www.sovos.com and follow us on LinkedIn and Twitter.

About Aatrix

Aatrix Software is a leading provider of W2, 1099 and ACA reporting solutions servicing over 300,000 businesses. Aatrix has been developing innovative accounting software solutions since 1986. Aatrix’ finance software has received numerous awards, including Software Digests highest overall rating and Home Office Computing Editors Pick. Today, the Aatrix Electronic Forms Division is one of the nation’s premier payroll reporting specialists.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.

Additional Press Releases

February 20, 2024
Sovos Introduces Compliance Cloud to Help Businesses Navigate Global Tax and Regulatory Environments

The First and Only Solution to Unify Tax Compliance and Regulatory Reporting Software and Data in One Platform ATLANTA, FEBRUARY 20, 2024 – Sovos, the always-on compliance company, today announced the launch of the Sovos Compliance Cloud, the industry’s first and only solution that unifies tax compliance and regulatory reporting software in one platform and provides […]

Read more
February 8, 2024
Sovos Announces New Executive Leadership for Global Sales and Marketing

Andy Hershey and Chris Lynch bring vast experience to key sales and marketing functions for global platform companies ATLANTA, FEBRUARY 8, 2024 – Global compliance technology solutions and services provider Sovos today announced the appointment of two new executives. Andy Hershey joins Sovos as its chief revenue officer, where he will lead the global direct […]

Read more
January 31, 2024
Sovos Announces New Sales Leadership for EMEA and LATAM Regions

Elcim Sirek and Marcelo Souza to drive growth and revenue at a time of increasing importance in the global compliance category ATLANTA, JANUARY 31, 2024 – Global compliance technology solutions and services provider Sovos today announced the appointment of two new sales leaders. Elcim Sirek has been promoted to the role of vice president of […]

Read more
North America ShipCompliant
January 30, 2024
Sovos’ Annual DtC Wine Shipping Report Indicates a Volume Decline While Value Remains Flat

Direct-to-Consumer Wine Shipping Report in collaboration with WineBusiness Analytics shows value of the channel steady at $4.1B despite economic pressures (ATLANTA) January 30, 2024 – Reflecting inflationary pressures and declines in winery visitation, 2023 brought a 6.5% decrease in year-over-year shipment volume to the direct-to-consumer (DtC) wine shipping channel, according to the latest Direct-to-Consumer Wine […]

Read more
North America
January 9, 2024
Sovos Names Dominic Constandi New Chief Customer Officer

Constandi to lead customer success and engagement to drive recuring revenue and customer retention   ATLANTA, JANUARY 9, 2024 – Global compliance technology solutions and services provider Sovos today announced the appointment of Dominic Constandi as its new Chief Customer Officer. In this role, he will initiate and drive customer programs that maximize customer value, […]

Read more