Tax software provider Sovos has acquired LTax, a New York-based provider of payroll withholding and unemployment tax software.
The acquisition joins LTtax’s withholding capabilities for wage income with Sovos’ nonwage income withholding offerings. LTax is Sovos’ fifth acquisition this calendar year. Terms of the deal were not disclosed.
LTax is designed for organizations that manage their own payroll services inhouse. With this acquisition, Sovos plans to use LTtax technology to support withholding from annuity and pension distributions, nonresident aliens, Foreign Account Tax Compliance Act (FATCA) needs and more. Sovos will also now be able to deliver payroll wage withholding support to customers reporting on the 941 series of forms.
Sovos has been doing a string of acquisitions lately. “Following the recent acquisitions of ETM, Booke and Keane, Sovos now serves the majority of insurance companies doing business in the U.S., supporting their statutory reporting, unclaimed property and tax information reporting needs,” said Paul Banker, vice president and general manager of Tax and Regulatory Reporting at Sovos, in a statement. “With a strong reputation in its market and a dedicated team of product and support staff, LTtax expands that reach and solves a critical need for our customers.”
Sovos is owned by the private equity firms Hg Capital and TA Associates. Ernst & Young served as a financial advisor to Sovos on the deal. Morris, Manning & Martin LLP provided legal counsel to Sovos for the acquisition, while Littman Krooks LLP provided legal counsel to LTtax.
