EY and RSM advise Sovos and Accordance on acquisition
Global tax software provider Sovos has announced the acquisition of UK firm Accordance, which specialises in VAT managed services. EY advised Sovos on the deal, while RSM served as financial advisor on the sell side, and DMH Stallard provided legal counsel.
As technology creates opportunities to streamline the integration and analysis of transaction data, technology-enabled managed services are giving companies the agility to pivot resources as needed in response to changing tax compliance demands. In order to boost its ability to deploy intelligent data integration and data quality dashboards for its clients, making it more easily manage a VAT compliance model as regulations evolve, Sovos has confirmed the purchase of Accordance for an undisclosed fee.
Accordance is an international VAT consultancy and compliance firm, enabling businesses to trade confidently through the provision of expert-led, tech-enabled compliance. Founded in 2006 in response to Europe’s rapidly changing VAT environment, the Brighton based firm also serves clients from an office in Amsterdam, and specialises in cross-border transactions and advise companies across the EU and beyond. Accordance has been a Sovos partner since 2018 and has implemented Sovos VAT Reporting software to provide technology-enabled compliance services to its clients.
“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,” said 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.”
The move is tax software provider’s Sovos’ third acquisition of 2020, ahead of a period of rapid transition ahead. The EU 2021 E-commerce VAT Package will mark a transformation in how sellers and platforms outside the EU can import goods sold to European consumers beginning in July 2021. Designed to close VAT collection gaps on transactions of every size, this e-commerce legislation will require many e-commerce platforms and direct-to-consumer vendors to appoint intermediaries -- often managed services providers -- to file VAT returns on their behalf. UK companies may also be affected by this legislation through the Brexit transition.
Lucy Franklin, CEO of Accordance, said, “VAT legislation is complex and constantly changing, and businesses need the support of both managed services and technology to trade confidently across Europe. As a global company focused on the full scope of VAT compliance needs, Sovos represents an opportunity for our clients, with a single partner for tax compliance everywhere they do business.”
Sovos received financial advice on the deal from Big Four firm EY, as well as legal counsel from law firm Burness Paull. Meanwhile, RSM served as financial advisor to Accordance, and DMH Stallard provided legal counsel to the firm on its sale.
