IRIS Business Services Ltd., a global RegTech firm, announced today that it has signed a definitive agreement to divest its Tax Technology (GST) Application Service Provider (ASP) business to Sovos, a leading global tax compliance solutions provider based in the United States. The transaction is valued at ₹1,512.4 million (₹151.2 crore).
The deal is part of IRIS’ broader strategy to simplify its business structure, focus more sharply on its core RegTech offerings, and drive long-term shareholder value. Proceeds from the sale will provide non-dilutive capital, allowing IRIS to fund its global expansion in the RegTech domain and support other emerging business lines.
Deal Highlights:
- Buyer: Sovos, a global leader in tax compliance solutions
- Business Sold: GST ASP (Application Service Provider) business of IRIS
- Transaction Value: ₹151.2 crore
- Expected Close: August 2025, subject to shareholder and regulatory approvals
- Continuity: All employees of the GST ASP unit will transition to Sovos
Strategic Realignment for Growth
- Balachandran, Co-founder and CEO of IRIS, stated:
“This divestiture is a strategic move aimed at consolidating our operations and channeling resources toward our high-growth RegTech vertical. The capital raised will strengthen our global ambitions in regulatory compliance solutions, while supporting innovation across all our business segments—without diluting shareholder equity.”
IRIS has built a global reputation for its suite of regulatory technology products, serving regulators, enterprises, and financial institutions across markets. The sale of the GST ASP vertical is seen as a natural step in its evolution toward becoming a leading international RegTech player.
Partnership Synergies with Sovos
Gautam Mahanti, Business Head of IRIS’ Tax Tech unit, added:
“Sovos has been a long-standing partner, and this acquisition marks a pivotal moment for our ASP business. Joining forces with Sovos enables us to scale faster and provide even greater value to customers in India and globally.”
Sovos is expected to seamlessly integrate the acquired assets and staff into its existing operations. The transition aims to maintain full continuity for customers while providing enhanced capabilities through Sovos’ global infrastructure and expertise.
What’s Next?
The deal is anticipated to close in August 2025, pending customary closing conditions and shareholder approval. Once complete, it will mark one of the most significant business transitions in India’s tax technology sector and further consolidate Sovos’ presence in the country.
With this move, IRIS sharpens its focus on the growing multi-billion dollar RegTech space, eyeing strong international growth opportunities while ensuring its existing business units remain well-capitalized and innovation-driven.