Sovos, a compliance technology solutions and services provider, has recently expanded its portfolio by acquiring Aatrix Software.
Sovos is renowned for its comprehensive approach to tax and regulatory compliance, while Aatrix Software specializes in e-filing solutions, including 1099 and ACA 1095 reporting, and W2/payroll reporting, catering primarily to small and medium-sized businesses (SMBs).
This acquisition aims to strengthen Sovos’ capabilities in compliance technology, particularly in local, state, and federal e-filing. While the financial terms of the deal were not disclosed, the acquisition is a strategic move to enhance Sovos’ offerings for SMBs, especially as the regulatory landscape evolves and electronic filing thresholds are lowered.
Sovos, with its commitment to easing the burden of tax and regulatory compliance, offers a wide range of solutions that adapt to the changing mandates, providing SMBs with essential tools and support. Aatrix Software, on the other hand, has carved out a significant market segment for itself by offering versatile and integrated solutions for payroll tax forms. It is particularly strong in mid-sized companies requiring multi-state tax forms, due to its partnerships with ERP and payroll providers.
The integration of Sovos and Aatrix is expected to create synergies by combining their extensive experience, technological solutions, and customer reach. This will result in a more comprehensive and accessible platform for businesses dealing with complex compliance requirements.
The acquisition sees the merging of two companies with a shared vision of simplifying compliance for SMBs. This move is particularly timely given the increasing digitization of tax compliance and its impact on businesses of all sizes.
Sovos CEO Kevin Akeroyd stated, “The continued digitization of tax compliance affects businesses of every size, and this is especially true for SMBs. 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 CEO Steve Lunseth remarked, “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. 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.”
Copyright © 2024 RegTech Analyst
Copyright © 2018 RegTech Analyst
