Avalara acquired by Vista Equity Partners for $8 billion

Tax compliance vendor Avalara has been purchased by Vista Equity Partners, the companies announced today. The all-cash transaction is valued at $8.4 billion, or a 27% premium over Avalara’s share price as of July 6.

“In partnering with Vista, Avalara will look to build on its successful platform by refining its go-to-market strategy, expanding its international workforce, streamlining its systems architecture, and continuing to pursue value-accretive M&A opportunities,” the company stated.

Avalara was founded in 2004 and is known for both its tax compliance content and technology and its work in many enterprise software channels including Microsoft Dynamics, NetSuite, Sage, Quickbooks, and Magento.

"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,” said Scott McFarlane, co-founder and CEO of Avalara.