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Avalara goes private in $8.4 billion deal with Vista Equity

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Avalara goes private in $8.4 billion deal with Vista Equity
(Logo Courtesy: Avalara, Inc.)

Avalara, Inc. announced on Monday that it had agreed to be acquired by private equity company Vista Equity Partners in a deal that values the automation software platform at $8.4 billion including debt.

Private equity firms have recently increased business investment as valuations of companies in all sectors have fallen as a result of a sell-off sparked by high inflation and tightening monetary policy.

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Even though total M&A struck a snag in the first half of the year, PE companies were the main forces behind international dealmaking.

Shares of Avalara fell nearly 4% in premarket trading in response to Vista’s offer of $93.50 per share, which indicates a 2% discount from the stock’s most recent closing.

However, the price marked a 27% premium over the stock’s closing price on July 6, when it had risen over 30% due to media reports of a potential takeover.

Avalara, which was established in 2004, operates a cloud-based platform that helps companies with tax compliance. Roku Inc., Zillow Group, and Pinterest are just a few of the companies that use the Seattle-based company.

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The transaction, which is expected to finalize in the second half of 2022, was advised by Goldman Sachs & Co. for Avalara.

As of March 31, Vista, which specializes in investments in tech and commercial software companies, managed close to $96 billion in assets.

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