Vista Fairness Companions mentioned Wednesday that it accomplished its acquisition of Seattle-based tax software program large Avalara.
The $8.4 billion deal, introduced in August, was authorised by Avalara shareholders final week. The deal formally takes Avalara off the New York Inventory Trade.
Based in 2004, Avalara went public in 2018, pricing shares at $24 every. Vista, a worldwide funding agency primarily based in Austin that manages $96 billion in belongings, acquired all excellent shares of Avalara frequent inventory for $93.50 per share.
The acquisition worth represented a 27% premium over Avalara’s share worth on July 6, earlier than media stories emerged a few potential transaction.
Avalara’s inventory was down 26% this 12 months amid the broader financial downturn.
The deal is the newest instance of personal fairness companies hungry for public firm acquisitions at cut price costs.
Avalara has greater than 30,000 clients that use its compliance automation software program to handle their gross sales and different forms of taxes. Clients embody Zillow Group, Pinterest, and others.
Avalara reported second quarter income income of $208.6 million, up 23% from the year-ago interval, and up 2% from the primary quarter. GAAP web loss got here in at $55.8 million, up from $31 million final 12 months.
The corporate has been on an acquisition spree of its personal these days, swooping up a gaggle of smaller tax-related software program suppliers.
Avalara employs 700 individuals within the Seattle space, and greater than 4,400 worldwide.
Vista paid $1.9 billion in 2019 to amass Bellevue, Wash.-based Apptio, one other public enterprise software program firm.