Golub Capital announced that as administrative agent, joint lead arranger and joint bookrunner, it is in the process of providing a GOLD financing to support the upcoming acquisition of Sovos Compliance, LLC by HgCapital.

Sovos is a leading global provider of mission-critical tax compliance software solutions. The company's sales, use, value-added tax, and non-wage & investment income tax reporting solutions enable corporate enterprise clients to streamline their unique tax compliance and reporting obligations. Sovos operates from its headquarters in Wilmington, Massachusetts, in addition to other locations in Minneapolis, Boulder and Amsterdam.   

This represents the fourth financing Golub Capital has worked on with Sovos (formerly known as Taxware), and would mark the first transaction between Golub Capital and HgCapital.

"Sovos has a strong reputation in the tax compliance industry. The Company's solutions have proven to drive meaningful efficiencies for its customers by automating tax reporting requirements and ensuring clients maintain compliance with tax authorities. We are very excited to continue to support the Company's continued growth," said Spyro Alexopoulos, Managing Director at Golub Capital. "We are also thrilled to work with a new sponsor partner in HgCapital who is uniquely positioned to add value to the Company by drawing on its extensive experience in the vertical application software market."   

"Golub Capital was the clear choice to lead the transaction given their long history of supporting Sovos. Golub Capital understood our strategy to accelerate Sovos' strong organic growth and support further accretive M&A and provided us with a highly flexible and compelling solution in a short time frame," said Edward Wielechowski, Principal at HgCapital.  "Furthermore, they remained steady with their conviction and delivered on terms through a period in which the debt markets were extremely turbulent."

Golub Capital's award winning middle-market lending team structures financing solutions with hold positions of up to $300 million. The team also underwrites and syndicates senior credit facilities and a proprietary suite of GOLD (one-loan debt) facilities, up to $500 million. Golub Capital has been a top 3 US Middle Market Bookrunner each year from 2008 through 2015 for senior secured loans of up to $500 million for leveraged buyouts (according to Thomson Reuters LPC and internal data; based on number of deals).

HgCapital is a sector expert private equity investor, supporting management teams to grow industry champions. Deeply resourced sector teams focus on specific sub-sectors and investment themes to identify companies occupying an established position within a niche, and which have the potential to grow faster than their market, create employment and become the leader in their industry.