Hg-backed Sovos acquires Accordance
Global tax software provider Sovos has acquired Brighton based Accordance, a UK value-added tax (VAT) managed services company.
Accordance was founded in Brighton in 2006 and the deal allows founders to exit and for a strong UK management team lead by Lucy Franklin to take the business forward.
Accordance has been a Sovos partner since 2018 and has implemented Sovos VAT Reporting software to provide technology-enabled compliance services to its clients. The acquisition comes at a critical moment for VAT countries, where businesses face a range of new regulatory mandates, from changes in periodic reporting to continuous transaction controls (CTCs) and allows Sovos to build its business in Europe.
“Accordance adds a leading service provider with a robust customer base and unique VAT expertise to our growing European organisation, strengthening the foundation for future global expansion,” says Andy Hovancik, CEO, Sovos. “With this acquisition, Sovos substantially increases our operations in Europe, where we already enjoy significant scale with more than 2,000 customers being served in the region.”
Sovos is owned by Hg, a London-based specialist private equity investor focused on software and service businesses. The shareholders of Accordance were advised by RSM Corporate Finance and DMH Stallard.
Jonathan Grant, who led the transaction for DMH Stallard, says: “This is a quality deal for a fast growing Brighton business, completed in the middle of lockdown. DMH Stallard have worked with Accordance since it was founded; this deal shows the value of a strong advisory team, and an investment by owners in building a strong culture and quality management team.”