Vista Equity Partners (Vista), is to acquire Avalara, a provider of tax compliance automation for businesses of all sizes, for $93.50 per share in an all-cash transaction valued at $8.4 billion, inclusive of Avalara’s net debt.
The per share purchase price represents a premium of 27% over the Company’s closing share price as of 6 July, 2022, the last trading day prior to media reports regarding a potential transaction.
In partnering with Vista, which focuses exclusively on investments in enterprise software, data, and technology-enabled businesses, 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 transaction, which has been unanimously approved by the Avalara Board of Directors, is expected to close in the second half of 2022, subject to customary closing conditions, including approval by Avalara shareholders and receipt of regulatory approval. Closing of the transaction is not subject to a financing condition.
Upon completion of the transaction, Avalara’s shares will no longer trade 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.
