Tax automation fintech Avalara is to be acquired by global investment firm Vista Equity Partners in an all-cash deal worth $8.4 billion.
Vista will acquire all outstanding shares of Avalara for $93.50 per share, representing a premium of 27% over the company’s closing share price as of 6 July 2022. The transaction value is inclusive of Avalara’s net debt.
Avalara CEO Scott McFarlane says the firm will benefit from Vista’s “expertise in enterprise software as we build and improve upon our cloud compliance platform”.
Through the deal, Avalara says it will refine its go-to-market strategy, expand its international workforce, streamline its systems architecture and continue to pursue M&A opportunities.
The transaction was unanimously approved by Avalara’s board of directors and is expected to close in H2 2022.
Upon completion of the transaction, Avalara’s shares will no longer trade on the New York Stock Exchange, and the firm will become a private company operating under the Avalara brand.
The fintech, based out of Seattle, Washington, went public in 2019 and provides cloud-based compliance solutions for various transaction taxes, including sales and use, VAT, GST, excise, communications, lodging and other indirect tax types.