Hg Has Made a Majority Investment in Sovos
- Sovos was built to solve the complexities of the digital transformation of tax, with complete, connected offerings for tax determination, continuous transaction control compliance, tax reporting and more.
- The company supports more than 8,000 customers, including half of the Fortune 500, operating in over 70 countries.
- Its SaaS products and proprietary Sovos S1 Platform integrate with a wide variety of business applications and government compliance processes.
- Sovos has employees throughout North America, Latin America and Europe.
- Hg is a leading investor in software and services, focused on backing businesses that change how we all do business.
- Hg’s deep technology expertise, complemented by vertical application specialization and dedicated operational support, provides a compelling proposition to management teams looking to scale their businesses.
- Hg has over $30 billion in funds under management, with an investment team of over 140 professionals, plus a portfolio team of more than 35 operators, providing practical support to help their businesses realize their growth ambitions.
- Based in London, Munich and New York, Hg has a portfolio of over 30 software and technology businesses, comprising over 30,000 employees across the UK, US and Europe.
About TA Associates:
- TA Associates is a leading global growth private equity firm.
- Investing as either a majority or minority investor, TA employs a long-term approach, utilizing its strategic resources to help management teams build lasting value in high quality growth companies.
- TA has raised $33.5 billion in capital since its founding in 1968 and is committing to new investments at the pace of over $2 billion per year.
- The firm’s more than 85 investment professionals are based in Boston, Menlo Park, London, Mumbai and Hong Kong.
Hg’s new investment in Sovos is a sign of their confidence in our market, our position and our unique ability to deliver a complete solution for modern tax, including tax determination, continuous transaction control compliance and tax reporting. With the renewed support from Hg and the additional backing of TA Associates, Sovos is ready for the next stage of growth at a crucial time, as the digital transformation of government, technology and business converge.
In 2016, Hg invested in the Sovos vision to put tax compliance software where it belongs — in the modern, digital financial core. Since then, Sovos’ team has executed perfectly on a formidable strategy. In addition to strong organic growth generated from a robust recurring revenue model, Sovos has also executed on its targeted acquisition strategy, bringing new entrepreneurial founders into the business. As we move further into a world of digitized tax and regulation, Sovos is a trusted, future-ready solution for its multi-national customers.
Sovos has been a cornerstone partnership for Hg as we’ve expanded into the U.S. over the years. The new Hg investment marks a new stage for the business, with Sovos offering an increasingly valuable proposition for customers with complex multinational operations. We’re absolutely delighted to continue our support for the Sovos team.
- Hg’s majority investment in Sovos was announced on August 20, 2020; financial terms were not disclosed.
- TA Associates will also join as a significant minority investor to support the next wave of Sovos’ growth.
- Upon closing of the transaction, Gero Wittemann of Hg and Hythem El-Nazer and Morgan Seigler of TA Associates will be appointed to the Sovos Board of Directors.
- Shea & Company served as financial advisor to Hg.