Avalara is expanding again through an acquisition, announcing today that it has acquired the Zytax line of energy-related tax automation products. Avalara purchased the assets from Houston-based FuelQuest, incorporating a new business for the company in how fuel excise taxes are processed.
“This acquisition continues Avalara’s longstanding strategy of extending our reach into new industries, providing more businesses with a single place to turn for all of their transactional tax requirements,” said Avalara founder and CEO Scott McFarlane. “A primary objective for our company in an acquisition is that we gain either industry-leading tax content, automation technology, or expert personnel; and, in this case, we have achieved all three.”
Terms of the deal were not disclosed, though FuelQuest will retain a long-term license to the technology as part of the agreement. Matt Tormollen, former FuelQuest CEO, has joined Avalara as executive vice president and general manager of the company’s newly-formed Excise Tax Division.
About 70 employees from Zytax have joined Avalara as part of the deal, most of them based in Houston and Green Bay.
Avalara, whose software helps businesses process sales taxes across various jurisdictions, purchased Tax Technology Services and UPC Matrix Master last year. The Bainbridge Island-based company — founded in 2004 — now employs more than 500 people.
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