Sovos, a global compliance technology solutions and services provider, acquired Aatrix Software, a company specializing in payroll tax forms.
The move aims to enhance Sovos’ capabilities across eFiling for 1099 and ACA 1095 reporting, as well as W2/payroll reporting, the companies said in a Thursday (Jan. 11) press release.
As the regulatory landscape continues to evolve and electronic filing thresholds are lowered, it becomes increasingly important for small- to medium-sized businesses (SMBs) to have access to technology solutions, the release said.
“The continued digitization of tax compliance affects businesses of every size, and this is especially true for SMBs,” Sovos CEO Kevin Akeroyd said in the release. “Small businesses really are the backbone of the U.S., and we have made a commitment at Sovos to provide them with the technology and support they need.”
Sovos’ acquisition of Aatrix Software brings together two companies with expertise in helping SMBs navigate the complexities of tax and regulatory compliance, according to the release.
Aatrix Software’s solution can adapt to various software offerings, the release said. The company’s primary focus is on serving customers through integrations with enterprise resource planning (ERP) and payroll providers.
Sovos provides tax, compliance and trust solutions and services, per the release. Its scalable IT-driven solutions are used by more than 100,000 customers in over 100 countries.
By joining forces, Sovos and Aatrix will be able to better inform users about changing mandates and provide them with access to tools and support, per the release.
“I believe that the timing is right for us to bring our solutions portfolio under the Sovos umbrella to create even stronger opportunities for our customers, partners and employees,” Aatrix CEO Steve Lunseth said in the release. “Our combined expertise and reach will assure that any business that wants to streamline their filing process will have access to the best people and solutions on the market.”
Nearly all of the more than 19,000 tax jurisdictions around the world are undergoing some level of digital transformation, Alice Katwan, president of revenue at Sovos, said in the PYMNTS eBook “2023: The Year of Strategic Shifts in Business.”
“In 2024, we are witnessing more of the same,” Katwan said. “Tax authorities around the world have either already announced new mandates and guidelines or are actively planning for them.”
For all PYMNTS B2B coverage, subscribe to the daily B2B Newsletter.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More