Avalara Inc said on Monday it had agreed to be acquired by private equity firm Vista Equity Partners in a deal that values the automation software platform at $8.4 billion including debt.
Private equity companies have ramped up dealmaking activity as the valuations of companies have dropped due to a sell-off triggered by high inflation and tighter monetary policy.
Even as M&A hit a roadblock, the PE firms were the chief drivers of global dealmaking in the first half of the year.
Vista's offer of $93.50 per share, which is a 2 per cent discount to Avalara stock's last close, sent shares down nearly 4 per cent in premarket trading.
The price went up nearly 30 per cent on media reports of a possible takeover, after it was a 27 per cent premium to the stock's close on July 6.
Avalara was founded in 2004 with a cloud-based platform that helps companies with tax compliance. The Seattle-based company counts Pinterest, Zillow Group and Roku Inc among its customers.
Goldman Sachs Co advised Avalara on the deal, which is expected to close in the second half of 2022.
As of March 31st, Vista managed almost $96 billion in assets, which is a focus on investments in technology and business software companies.
In January, the company teamed up with activist investment firm Elliott Management for a $16.5 billion buyout of software company Citrix Systems Inc.