Avalara, a provider of tax compliance automation for businesses of all sizes, announces that it has entered into a definitive agreement to be acquired by Vista Equity Partners (Vista), a global investment firm focused solely on enterprise software, data and technology-enabled business. In cooperation with institutional co-investors.
Under the terms of the agreement, Vista will acquire all outstanding common stock of Avalara for $93.50 per share in a cash transaction of $8.4 billion, including Avalara’s net debt. The purchase price of the stock represents a 27 percent premium to the company’s closing price for the company’s stock on July 6, 2022, the last trading day before media reports of a potential deal.
Founded in 2004, Avalara’s success depends on an extensive partner network. Big tax data and a large repository to help customers stay on top of dynamic tax rules and regulations; and a comprehensive and multi-product cloud tax compliance portfolio. Partnering with Vista, Avalara aims to build on its successful platform by improving its go-to-market strategy, expanding its international workforce, simplifying its systems architecture, and continuing to pursue value-enhancing M&A transactions.
“For nearly two decades, Avalara has ambitiously pursued its vision of automating global compliance, reducing the burden on businesses and governments around the world. As a leader in this category, we believe our continued investment in innovation and expertise is exciting for our customers, partners and employees. We are excited to partner with Vista. We will leverage their expertise in enterprise software as we build and enhance our cloud compliance platform,” said Scott MacFarlane, Co-Founder and CEO of Avalara.
“Vista has built a reputation as the partner of choice for the next generation of software companies led by its founders,” said Monte Saroya, Vista Principal Fund Co-President and Senior General Manager. “We look forward to working with Scott and the entire Avalara team to advance their vision and continue to provide innovative solutions to customers.”
“Avalara is a very important platform that serves customers in a variety of end markets, including retail, manufacturing, hospitality and software,” said Adrian Alonso, managing director of Vista. “Avalara’s solutions, commitment to product innovation, and its extensive network of integrating partners, resellers, and accountants make it a true industry leader.”
Details of the transaction
The transaction, which was unanimously approved by Avalara’s board of directors, is expected to close in the second half of 2022, subject to usual closing terms, including approval by Avalara shareholders and receipt of regulatory approval. Closing the deal is not subject to financing terms.
Upon completion of the transaction, Avalara’s shares will no longer be traded on the New York Stock Exchange and Avalara will become a private company. The company will continue to operate under the Avalara name and brand.
Consultants
Goldman Sachs & Company. LLC acts as Avalara’s exclusive financial advisor, Simpson Thacher & Bartlett LLP and Perkins Coie LLP act as legal counsel.
Kirkland & Ellis LLP acts as legal advisor to Vista.
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