Providence Equity Partners, a private equity firm specialising in growth-focused investments across media, communications, education, and technology, has acquired Tax Systems, a provider of global tax and accounting software, from mid-market investor Bowmark Capital.
Financial terms of the transaction have not been disclosed.
Founded in 1991, Tax Systems delivers software solutions that digitise tax compliance processes, enabling professionals to automate workflows, enhance regulatory compliance, mitigate risk, and extract data-driven insights.
The company serves over 1500 clients, including multinational corporations, more than 80% of the UK & Ireland’s leading accounting firms, and approximately 40% of the FTSE 100.
Since Bowmark led the company’s take-private transaction from AIM in 2019, Tax Systems has doubled both its revenue and profits. The firm has expanded its capabilities with the development of a cloud-native, multi-tax technology platform and recently launched Pillar2, an AI-driven SaaS solution designed to address the OECD’s global Pillar Two compliance and reporting requirements.
Providence’s investment is expected to accelerate Tax Systems’ growth trajectory, supporting further expansion of its technology platform and the introduction of new tax and regulatory compliance solutions across existing and new markets.
Providence was advised by Arma Partners (M&A), White & Case and A&O Shearman (Legal), Plural Strategy (Commercial), FTI Consulting (Financial), RingStone (Technical), and EY (Tax).
Bowmark received advisory support from Houlihan Lokey (M&A), Stephenson Harwood and NautaDutilh (Legal), OC&C (Commercial), and Deloitte (Financial, Tax, and Technology).
Tax Systems was advised by Arrowpoint Advisory (M&A) and Burness Paull (Legal).
