Seattle-based tax automation company Avalara announced Tuesday that it has acquired assets from DAVO Technologies, a company that helps small businesses automate daily sales tax requirements.
DAVO, headquartered in Westbrook, Maine, uses technology that automatically connects to point of sale systems to extract the amounts of tax owed, set sales tax funds aside daily, hold the funds, and then file and pay their sales tax for them when they are due to state and local tax authorities. The company supports more than 4,000 small businesses in the U.S., including coffee shops, restaurants, bike stores and more.
Financial terms of the deal were not disclosed.
Avalara and DAVO are natural extensions to one another; our services are complementary, and we believe there is an immediate opportunity for value to their customers and our shared partners, Jayme Fishman, EVP of corporate development at Avalara, said in a statement. The DAVO team has built an excellent, customer-centric product and we are delighted to partner with them to help improve and expand upon their capabilities.
Avalara has been on an acquisition spree of late, swooping up companies including Business Licenses, Transaction Tax Resources, and Impendulo Limited. It also announced the acquisition of INPOSIA Solutions; the deal was expected to close in the first half of 2021.
The growth of e-commerce amid the pandemic is helping drive business for Avalara. Its full-year revenue for 2020 came in at $500.6 million, up 31% year-over-year.