Avalara Inc, one of the leading providers of cloud-based tax compliance solutions, revealed on Monday that it agreed to its acquisition by the private equity firm Vista Equity Partners. This deal valued at $8.4 billion is regarded as one of the largest private take-overs amidst a volatile market scenario.
According to the sources, it is known that Vista Equity Partners has procured a loan of $2.5 billion from private lending companies and roped in institutional investors as co-investors in this $8.4 billion deal.
With a 2% discount marked in Vista’s offer of $93.50 per share to Avalara stock closing price on Friday, saw a drop of 3.86% on Monday.
Earlier, the price was marked with a 27% premium at the stock’s close on July 6th after which it surged to 30% as the media reported a possible acquisition.
In June 2018 as Avalara went public, it benefited from the digital transition caused by the global pandemic, as lots of businesses shifted to software applications in automating their tax procedures.