Houlihan Lokey Advises Tax Systems and Bowmark Capital

Houlihan Lokey is pleased to announce that Tax Systems, a portfolio company of Bowmark Capital (Bowmark), has been acquired by Providence Equity Partners (Providence).

Founded in 1991, Tax Systems is a leading specialist provider of software and solutions that digitises the tax compliance process—enabling tax professionals to automate workflows, enhance compliance, mitigate risk, and generate valuable insights from their tax function. The company has developed the industry’s leading, cloud-native, multi-tax technology platform. Most recently, Tax Systems launched Pillar2, its AI-powered SaaS solution to address the complexities of the Organisation for Economic Co-operation and Development’s global Pillar Two compliance and reporting. The company now serves more than 1,500 clients, including multinational enterprises, more than 80% of the top U.K. and Ireland accounting firms, and approximately 40% of the FTSE 100. Bowmark completed the take-private of Tax Systems from AIM (a submarket of the London Stock Exchange) in 2019.

Bowmark is a leading U.K. middle-market private equity firm specialising in technology, data, and service companies. Founded in 1997, Bowmark manages funds of over £2 billion and has made more than 50 investments. The firm invests up to £300 million per transaction through majority or significant minority stakes in companies with compelling growth prospects seeking a supportive, value-added partner to help them realise their ambitions.

Providence is a specialist private equity investment firm focused on growth-orientated media, communications, education, and technology companies across North America and Europe. Since its founding in 1989, Providence has invested over $36 billion across more than 180 private equity portfolio companies. With its headquarters in Providence (Rhode Island, U.S.), the firm also has offices in New York, London, Boston, and Atlanta.

Providence’s investment will support Tax System’s continued platform expansion and innovation, targeting new tax and regulatory compliance solutions in existing and new geographies.

Houlihan Lokey served as the exclusive sellside M&A and debt advisor to Bowmark and Tax Systems, supporting on all relevant aspects of the transaction, including marketing, structuring a highly competitive process, coordination of due diligence, and negotiating key deal terms.

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