The deal reflects "interest and investment in New Zealand's innovative businesses," firm partner says
MinterEllisonRuddWatts has advised tax tech company DataTorque on the sale of a minority stake to the private equity fund of New Zealand nonprofit KiwiSaver and Investment Fund manager Simplicity.
Under the deal, Simplicity’s fund gains a 30% interest in the Wellington-based tax tech company. This represents the fourth direct investment by the fund into innovative Kiwi businesses, according to Simplicity.
“Both the IT and tax markets are developing incredibly quickly and there is a large amount of focus and investment flowing into digitisation, reducing tax leakage and ensuring data sharing and consistency across jurisdictions,” DataTorque chief executive Bill Chatwin explained. “Tax works best when it's transparent, fair, and people can see the outcomes, and automation/digitisation is an enabler for this. These are, again, themes that resonate with our understanding of Simplicity’s reason for being.”
He added that with the support provided by DataTorque, governments could “collect more revenue to enable them to provide public services and strengthen economies, creating opportunities that make a good life for all citizens.”
"It’s great to see continued interest and investment in New Zealand’s innovative businesses, which is allowing new ideas and opportunities to be developed as market successes. Simplicity’s investment into DataTorque is a perfect example of this,” said John Conlan, corporate partner at MinterEllisonRuddWatts.
Conlan worked together with fellow partner Rodney Craig and senior solicitor Max McMahon to advise on all aspects of the transaction its inception to its completion.
Wellington-based DataTorque specialises in revenue management software. The company designs and delivers solutions enhancing revenue collection efficiency, with operations in 16 countries. These solutions aim to optimize public revenue systems, efficiently assisting in tax collection.