Tax automation fintech Avalara is to be acquired by global investment firm Vista Equity Partners in an all-cash deal worth $8.4 billion.

All of Avalara’s outstanding shares will be purchased by Vista for $93.50 per share, a premium of 27% over the stock’s closing price on July 6, 2022. Avalara’s net debt is included in the acquisition value.

“The firm will benefit from Vista’s expertise in enterprise software as we build and improve upon our cloud compliance platform”.

                                                                                           Scott McFarlane, CEO, Avalara.

Avalara claims that it would continue to look for M&A prospects while also improving its go-to-market strategy, growing its worldwide staff, and streamlining its systems architecture.

“Vista has built a reputation as a preferred partner for founder-led, next-generation software companies,”

“We look forward to working with Scott and the entire Avalara team to advance their vision and continue delivering innovative solutions to customers.”

               Monti Saroya, Co-Head Flagship Fund and Senior Managing Director of Vista’s.

The deal, which the board of directors of Avalara unanimously approved, is anticipated to finalize in the second half of 2022.

“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.”

                                                                        Adrian Alonso, Managing Director at Vista.

Following the deal, Avalara will become a private business using the Avalara name and its shares won’t trade on the New York Stock Exchange any longer.

The Seattle-based fintech offers cloud-based compliance solutions for a range of transaction taxes, including sales and use, VAT, GST, excise, communications, lodging, and other indirect tax types. It went public in 2019.