March 6, 2021

Avalara’s acquisition spree continues: Seattle tax automation company to buy INPOSIA Solutions

(GeekWire File Photo / Nat Levy)

Tax automation software provider Avalara is buying another company. This time it’s INPOSIA Solutions, a Germany-based company that helps more than 700 customers manage and meet compliance requirements for digital invoices. The 10-year-old company employs more than 80 people around the world.

Financial terms were not disclosed. The deal is expected to close in the first half of next year.

“We look forward to working with the INPOSIA team as the complexities of real-time compliance spread worldwide,” Jayme Fishman, EVP of corporate development at Avalara, said in a statement.

Earlier this month, Seattle-based Avalara acquired Impendulo Limited, a London-based company that sells insurance tax compliance software.

Last month, Avalara said it paid $ 97 million in cash and stock to buy the operational assets of Business Licenses, a Monsey, NY-based company that helps customers with business license compliance.

And in October Avalara paid approximately $ 377 million in cash to acquire Transaction Tax Resources (TTR), a McMinnville, Ore.-based provider of various tax-related products and services.

Avalara’s stock price has nearly tripled since March. The company went public in June 2018.

Avalara reported $ 127.9 million in third quarter revenue, up 30% year-over-year, and non-GAAP earnings per share of $ 0.02, up by four cents. Wall Street expected revenue of $ 116 million and earnings per share of – $ 0.09.

“We continue to see a confluence of macro trends that are tailwinds for our business, from the accelerating growth of ecommerce to broader adoption of cloud-based solutions and a growing emphasis on efficiency to the increasing need for regulatory compliance enforcement,” Avalara CEO Scott McFarlane said last month in a statement. “We believe that global demand for compliance automation is inevitable, and we are well positioned to capture the large opportunity in front of us.”

Avalara had more than $ 1 billion in cash and cash equivalents as of Sept. 30. The company in August announced plans to sell $ 500 million in shares of its common stock.