The tax-automation software company adds a cash infusion from its investors to a busy summer of corporate developments.
It’s been a busy summer for tax-automation software company Avalara. The company announced plans to anchor a new office building in downtown Seattle and has now secured $50 million in funding.
Avalara’s latest infusion of cash comes from existing investors Warburg Pincus, Sageview Capital and Technology Crossover Ventures. An additional $46 million from them will be used to repurchase shares from early investors in the company.
A big chunk of the $50 million will go toward two upcoming acquisitions, Avalara CEO Scott McFarlane said. He said he will disclose the companies when the deals close.
The company has had an aggressive acquisition strategy since its founding, regularly scooping up companies that specialize in different tax areas. Avalara has bought 15 companies in its 12-year life, and McFarlane said last month he expects that will always be a part of the company’s strategies.
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“The answer is yes, we will continue to acquire companies, but it will probably slow down,” he said.
Warburg Pincus, a New York-based private equity firm, poured $100 million into the company in 2014. The firm also invests in Seattle-based PayScale and Bellevue startup OfferUp.
Avalara, which makes software that automates sales-tax charges for businesses of all sizes, employs 1,100 people across the world. The company signed a deal earlier this year to move into an under-construction building near CenturyLink Field, which will be called Avalara Hawk Tower.
McFarlane spent much of this month’s Seahawks opening game staring across the stadium to the site of the company’s future headquarters.
“It’s staggeringly cool to see a building that will carry our name in such a prominent place in Seattle,” he said.
Avalara was founded on Bainbridge Island, where it still keeps an office. The company now has its headquarters in downtown Seattle.
Avalara has raised more than $300 million total from investors.