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Avalara goes private in PE deal with Vista

Ryan Lawler
illustration of a calculator with dollar signs on it

Illustration: Aïda Amer/Axios

PE firm Vista Equity Partners has agreed to take enterprise tax compliance software maker Avalara private in a deal worth $8.4 billion.

Why it matters: Private equity ownership looks more appealing than the public markets at the moment, given the plunge in fintech valuations. We expect more companies to follow Avalara’s lead if market conditions persist.

Details: In an all-cash deal expected to close in the second half of 2022, Vista will acquire all outstanding Avalara shares for $93.50 per share.

  • That is below Friday's closing price of $95.55 but represents a 27% premium over its closing share price on July 6 — the day reports of the transaction first emerged.

Context: At Friday's close, Avalara's stock price was down 50% from a 52-week high of $191.67 set last September.

Of note: Goldman Sachs served as financial adviser to Avalara, with Simpson Thacher & Bartlett and Perkins Coie acting as legal counsel. Kirkland & Ellis LLP is Vista's legal counsel for the deal.

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