Global tax software provider Sovos today announced it has acquired Brazil-based Fit Sistemas, a leading provider of cloud-based regulatory reporting and electronic invoicing solutions.
With this acquisition, Sovos extends its Sistema Público de Escrituração Digital (SPED) reporting capabilities and sharpens its 360-degree view of the Brazilian tax environment, one of the world’s most complex, with a complete software-as-a-service (SaaS) solution for modern tax challenges.
Fit Sistemas serves customers in a variety of industries — including telecom, retail, agriculture, media and financial services — and its solutions are integrated with leading ERP systems including SAP, Oracle NetSuite, Totvs, Sintel, CITEL and IFS. The company’s APIs integrate data flow and process validation as well as authorization of outbound and inbound invoices related to the NFe (e-invoice), CTe (transport services document), NFCe (electronic consumer receipt), SAT (electronic tax coupons) and DFe (electronic fiscal document) mandates in Brazil.
“Building on previous cloud acquisitions, Fit Sistemas deepens Sovos’ commitment to Brazil and adds solutions for tax compliance challenges facing companies operating throughout Latin America and around the world,” said Sovos CEO Andy Hovancik. “Sovos is the only company to provide a scalable, end-to-end solution capable of ensuring e-invoicing compliance in Brazil and more than 65 other countries.”
Sovos will leverage the reporting capabilities and cloud building blocks in the Fit Sistemas solutions across the region. With this most recent acquisition, Sovos expands its customer base to more than 12,000 companies and its global team to more than 1,700 employees working in more than 11 countries across the Americas and Europe.
“Brazil’s tax administration rolled out the SPED reporting rules in 2008 to digitize paper invoices and records, but the rules change frequently and create complex obligations for businesses,” said Paulo Castro, Brazil country manager at Sovos. “Managing those shifting rules becomes even more difficult for businesses reliant on legacy on-premise solutions, and cloud-first options are increasingly in demand. Fit Sistemas’ 100% SaaS solutions deliver deep customer value and complement Sovos’ offerings for Brazil.”
John Gledhill, vice president of corporate development for Sovos, said, “In 2020, Sovos acquired companies in the U.S., the U.K. and Brazil as part of its mission to Solve Tax for Good everywhere our customers do business. With the acquisition of Fit Sistemas, Sovos is continuing to grow its footprint in line with its strategy of worldwide tax compliance fueled by local expertise.”
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. EY served as financial advisor to Sovos, and Veirano Advogados provided legal counsel. Fortezza Partners served as financial advisor to Fit Sistemas, and Candido Martins Advogados provided legal counsel.