Providence Equity Partners, a private equity firm focused on growth investments in media, communications, education, and technology, has acquired Tax Systems, a global provider of tax and accounting software, from Bowmark Capital. The financial details of the deal remain undisclosed.

Founded in 1991, Tax Systems specializes in software solutions that streamline tax compliance processes. Their offerings help professionals automate workflows, improve regulatory compliance, reduce risk, and gain insights from data. The company boasts a client base of over 1,500, including many multinational corporations, more than 80% of leading accounting firms in the UK and Ireland, and around 40% of the FTSE 100.

Under Bowmark's ownership since its take-private transaction from AIM in 2019, Tax Systems has seen significant growth, doubling both its revenue and profits. The company has enhanced its capabilities by developing a cloud-native, multi-tax technology platform and recently introduced Pillar2, an AI-driven SaaS solution aimed at meeting the OECD’s global Pillar Two compliance and reporting standards.

Providence's investment is anticipated to further accelerate Tax Systems' growth, facilitating the expansion of its technology platform and the development of new tax and regulatory compliance solutions in both existing and new markets.

Providence was supported in this transaction by various advisors, including Arma Partners for M&A, White & Case and A&O Shearman for legal matters, Plural Strategy for commercial advice, FTI Consulting for financial guidance, RingStone for technical support, and EY for tax-related issues. Bowmark received advisory assistance from Houlihan Lokey for M&A, Stephenson Harwood and NautaDutilh for legal advice, OC&C for commercial strategy, and Deloitte for financial, tax, and technology consulting. Tax Systems was advised by Arrowpoint Advisory for M&A and Burness Paull for legal matters.