Acquisition strengthens Sovos’ position as a leading global solution for modern tax amid worldwide acceleration of continuous compliance mandates
BOSTON (PRWEB) MAY 28, 2019
Global tax software provider Sovos today announced it will acquire Istanbul-based Foriba, a leading player in e-invoicing, e-delivery notes, e-receipts and periodic value-added tax (VAT) reporting in Turkey and beyond. Following Sovos’ recent acquisitions of other real-time tax compliance leaders Invoiceware, Paperless and TrustWeaver, Foriba will further strengthen Sovos’ global tax solution built for a digital world, with tax determination, e-invoicing compliance and tax reporting solutions that help multinational companies Solve Tax for Good™ everywhere they do business. With expert teams in Latin America, North America, western Europe and now Turkey, Sovos has the global capability to address the challenge of continuous VAT compliance as governments worldwide pivot to such mandates.
Turkey has had complex and mandatory digital VAT controls since 2014, and it’s one of the few countries outside of Latin America with a mature e-invoicing mandate. As one of Turkey’s leading providers, Foriba continued to extend its digital tax compliance capabilities with services for additional Turkish mandates on electronic customer receipt reporting, the mandatory transfer of accounting ledgers, e-delivery notes and other requirements. With Spain, Hungary, Portugal, the U.K., Italy and other countries investing in real-time and near-real-time transaction control requirements, Sovos will use Foriba’s experience to help customers address this new wave of digital taxation.
“By 2025, companies in VAT economies are expected to exchange more than 75 percent of all invoices electronically with tax administrations in real time or very shortly after the invoice-exchange process,” said Andy Hovancik, CEO, Sovos. “Sovos’ acquisition of Foriba, along with other recent investments, helps us safeguard customers as countries around the world adopt e-invoicing, e-archiving and e-receipt regulations for B2B and B2C transactions.”
Foriba was founded in 1999 as an SAP systems integrator and remains rooted in the market through its SAP OEM agreements and blue-chip clients. With the operational structure to scale, Foriba further solidifies Sovos’ SAP strategy to make it easier for multinational corporations to approach tax compliance globally. Sovos will integrate Foriba solutions into the Sovos S1 platform, which enables companies with multi-country operations to centralize compliance to meet all global indirect tax requirements.
“Sovos has amassed the talent of entrepreneurs and regulatory experts to deliver a leading scalable, end-to-end solution capable of ensuring e-invoicing compliance in more than 60 countries,” said Koray Gultekin Bahar, co-founder and CEO of Foriba. “Both Foriba and Sovos have enthusiastic teams focused on product quality, customer experience and competitive differentiation, and together we’re the clear choice in a global market poised for growth.”
Steve Sprague, vice president and general manager of the global VAT line of business at Sovos, said, “Combined, Sovos and Foriba teams will provide expanded operational capabilities for professional services, support and large-scale SAP projects. Our customers will also benefit from Foriba’s solid R&D foundation and reliable products as we integrate them into the S1 Platform and bring them to a broader market in Europe and beyond.”
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. Deloitte served as financial advisor to Sovos, and Skadden and Akol provided legal counsel. Gökçe provided legal counsel to Foriba and its investors, Revo and IFC.
“Turkey is a major world trade center, where many of the world’s best-known brands have significant presence, and Foriba has a tier-one client base running global ERP systems,” said John Gledhill, vice president of corporate development for Sovos. “The company’s entrepreneurial spirit is a cultural fit with Sovos, and together, we’re uniquely positioned to fulfill our shared mission to help companies thrive in the new world of digital tax.”
Sovos is a leading global provider of software that safeguards businesses from the burden and risk of modern tax. As governments and businesses go digital, businesses face increased risks, costs and complexity. The Sovos Intelligent Compliance Cloud is the first complete solution for modern tax, giving businesses a global solution for tax determination, e-invoicing compliance and tax reporting. Sovos supports 5,000 customers, including half of the Fortune 500, and integrates with a wide variety of business applications. The company has offices throughout North America, Latin America and Europe. Sovos is owned by London-based Hg. For more information visit https://www.sovos.com and follow us on LinkedIn and Twitter.
Foriba is a leading regulatory technologies company helping enterprises to easily transfer their accounting and finance-based business processes to a digital platform. The company delivers 25 different solutions and services in more than 10 countries with regulatory compliance requirements, and its customers include more than 450 multinational companies. Foriba solutions include e-Invoice, e-Ledger, e-Archive, e-Delivery note, e-Ticket and e-Signature. As a trusted compliance service provider for electronic invoicing, Foriba creates, signs and stores more than 30 million electronic documents per month. Foriba is headquartered in Istanbul. Its investors include Revo Capital, Endeavor Catalyst and IFC. For more information visit http://www.foriba.com and follow us on LinkedIn and Twitter.
Christina Dela Cruz on behalf of Sovos
Read Sovos CEO Andy Hovancik’s take on the Foriba deal.