Providence Acquires Tax Systems in Strategic Deal
Deal News | Apr 01, 2025 | Providence Equity Partners Inc
Providence Equity Partners has announced its acquisition of Tax Systems from Bowmark Capital, in a deal aimed at expanding Tax Systems’ presence in the tax compliance software market. Providence, a private equity firm with a focus on growth-oriented sectors such as media, technology, and communications, plans to leverage its expertise to support Tax Systems’ platform expansion, targeting new geographies and improving tax compliance solutions. Tax Systems, a specialist provider in digitizing tax compliance and trusted by over 1,500 clients, including a significant portion of top UK&I accounting firms and FTSE 100 companies, is set for further growth under Providence's stewardship. Bowmark, which owned Tax Systems since taking it private in 2019, facilitated significant growth and product development, positioning the company as a leader through strategic investments and international acquisitions. Financial terms of the acquisition were not disclosed. The deal was advised by several legal, M&A, and consultancy firms for all parties involved.
Sectors
- Private Equity
- Software & Technology
- Financial Services
Geography
- United Kingdom – Tax Systems is a UK-based company serving a major portion of top UK&I accounting firms and FTSE 100 companies.
- United States – Providence Equity Partners is headquartered in the United States and has offices in North America and Europe.
Industry
- Private Equity – The acquisition involves Providence Equity Partners, a private equity firm known for investing in growth-oriented sectors.
- Software & Technology – Tax Systems operates within the software sector, focusing on tax compliance solutions, which is central to the transaction.
- Financial Services – The transaction revolves around tax compliance solutions, crucial to the financial operations of enterprise clients.
Financials
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Providence Equity Partners | Acquirer | Company | A private equity investment firm focused on media, communications, education, and technology sectors. |
| Tax Systems | Target Company | Company | A global provider of tax and accounting software solutions. |
| Bowmark Capital | Vendor | Company | A mid-market private equity firm specializing in technology, data, and service companies. |
| Arma Partners | M&A Advisor for Providence | Company | Advised Providence on the M&A transaction. |
| White & Case | Legal Advisor for Providence | Company | Provided legal advisory services to Providence. |
| Houlihan Lokey | M&A Advisor for Bowmark | Company | Advised Bowmark on the M&A transaction. |
| Arrowpoint Advisory | M&A Advisor for Tax Systems | Company | Advised Tax Systems on the M&A transaction. |