As per the terms of the transaction, shareholders of the publicly-listed automated tax compliance company, which provides cloud-based compliance solutions for multiple transaction taxes, will be offered $93.5 per share in cash by the investment firm
Vista Equity Partners to acquire Avalara in an all-cash deal. (Credit: Michal Jarmoluk from Pixabay)
Avalara, a US-based provider of tax compliance automation, has agreed to be acquired by Vista Equity Partners in a deal worth around $8.4bn.
As per the terms of the deal, shareholders of the publicly-listed Avalara will be offered $93.5 per share in cash by the global investment firm. The consideration is inclusive of the net debt of the automated tax compliance company.
The deal has been approved unanimously by Avalara’s board of directors.
After the closing of the deal, Avalara’s shares will be delisted from the New York Stock Exchange (NYSE), and it will become a private company, operating under the same brand.
Vista Equity Partners managing director Adrian Alonso said: “Avalara is a mission-critical platform serving customers in a variety of end-markets, including retail, manufacturing, hospitality, and software.
“Avalara’s solutions, its commitment to product innovation, and its network of extensive partner integrations, resellers, and accountants make it a true leader in the space.”
Avalara, which was founded in 2004, is headquartered in Seattle.
The company provides cloud-based compliance solutions for multiple transaction taxes such as sales and use, goods and services (GST), value-added tax (VAT), communications, excise, lodging, and other types of indirect taxes.
Under the ownership of Vista Equity Partners, the company is expected to build on its platform by refining its strategy for go-to-market, grow its international workforce, optimise its systems architecture, and continue to pursue value-accretive merger and acquisition (M&A) opportunities.
Avalara co-founder and CEO Scott McFarlane said: “For nearly two decades, Avalara has ambitiously pursued its vision to automate global compliance, making tax less taxing for businesses and governments around the world. As a leader in this category, we believe our continued investment in innovation and experience is exciting for our customers, partners, and employees.
“We are pleased to partner with Vista and will benefit from their expertise in enterprise software as we build and improve upon our cloud compliance platform.”
The deal, which is subject to approval by Avalara’s shareholders, regulatory approval, and other conditions, is anticipated to close in the second half of this year.
Earlier this year, Vista Equity Partners alongside Elliott Investment Management signed a $16.5bn deal to acquire Citrix Systems, a US-based cloud computing and virtualisation technology company.