Avalara, a provider of tax and compliance technology, has closed an equity investment from a consortium spearheaded by BlackRock’s Private Financing Solutions.
Vista Equity Partners, which initially invested in Avalara in 2022, will continue as the majority shareholder following this transaction.
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According to Avalara, the entire investment will be allocated towards purchasing shares from existing shareholders.
Avalara CEO and co-founder Scott McFarlane said: “Avalara’s mission is to be part of every transaction in the world.
“With support from partners like Vista, we’ve evolved from a single-product innovator to a trusted, comprehensive provider of tax and compliance solutions embedded in our customers’ financial systems through a powerful partner ecosystem.
“We’re proud to welcome BlackRock as an investor as we work to advance our position as a trusted provider of innovative tax and compliance software.”
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By GlobalDataAvalara has developed cloud-based software aimed at automating various tax and compliance tasks for businesses.
Recently, the company incorporated agentic AI into its operations, using a combination of enterprise language models, domain-specific models, AI agents, and an extensive compliance content network.
Avalara’s technology platform operates across multiple cloud environments.
The firm emphasises that its systems are designed to maintain human oversight through embedded review checkpoints in its AI agents.
This is intended to allow organisations to retain control and transparency over activities such as tax filings, registrations, and other compliance procedures.
Currently, Avalara’s services are used by more than 43,000 organisations across over 75 countries, offering solutions that cover a range of compliance processes, including tax calculations and exemption certificate management.
