Tax software provider Sovos has bought Fit Sistemas, a Brazilian provider of cloud-based regulatory reporting and electronic invoicing solutions.
The buy fits into Sovos’ strategy to provide tax compliance globally fueled by local expertise. As was the case for Sovos’ last few acquisitions, EY served as the financial advisor for the deal, the terms of which were not disclosed.
Companies in Brazil must comply with the government’s Sistema Público de Escrituração Digital (SPED), or public system of digital bookkeeping. The acquisition of Fit Sistemas extends Sovos’ SPED capabilities and its overall coverage of the Brazilian tax environment, which is notorious for its complexity.
Fit Sistemas serves customers in a range of industries, including telecom, retail, agriculture, media and financial services, and its solutions integrate with ERP systems such as SAP, Oracle NetSuite, Totvs, Sintel, CITEL and IFS.
Sovos will leverage the reporting capabilities and cloud building blocks in the Fit Sistemas solutions across the region.
“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, in a statement. “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 percent SaaS solutions deliver deep customer value and complement Sovos’ offerings for Brazil.”
