Seattle sales tax automation company 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.
Founded in 2006 by Shon Holyfield, TTR is known as the “tax answer company” and helps more than 1,400 customers — including 30% of the Fortune 500 — with tax research, automation tools, consulting, and other content.
TTR will operate as a subsidiary of Avalara, which will integrate parts of TTR’s offerings into its own platform and offer a new subscription product for tax content. Avalara will now employ more than 2,500 people after adding 130 employees from TTR.
“As our teams work to integrate and execute, we believe the exchange of expertise, information, and technologies between the two companies will improve our products, grow our business, and continue to pioneer tax technology services in our field,” Avalara CEO Scott McFarlane said in a statement. “As more businesses move to rely on digital infrastructure, we believe our technologies will change how tax teams think about cloud-based tax automation to support their business decision-making and growth.”
Avalara estimates that TTR will bring in $20 million in 2020 GAAP revenue and break even on GAAP operating income.
Avalara beat analyst expectations for its second quarter earnings report, posting $116.5 million in revenue, up 28% year-over-year, and a non-GAAP earnings per share of $0.04.
June was the company’s best non-December total bookings month ever, as it sees demand grow amid the economic crisis. Avalara’s stock price has more than doubled since March. The company went public in June 2018.
Last year Avalara acquired Indix, a Seattle startup that had accumulated vast amounts of data on product information.