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Avalara Taxcient Merger Creates Outsourced Sales & Use Tax Management Powerhouse
1/25/2010
Addition of Advanced Exemption Certificate Management, Filing, and Professional Service Expertise Produces Unique End-to-End Sales Tax Service Provider
 
Bainbridge Island, WA — January 25, 2010 —Avalara (www.avalara.com), the leading provider of web-based sales tax automation for businesses of all sizes, announced today a merger with San Diego-based Taxcient (www.taxcient.com), the leading supplier of web-based exemption certificate management (ECM) for sales tax. The merger marks a major milestone in the companies’ common quest to revolutionize the sales and use tax management industry through the application of leading-edge technology and top-flight tax knowledge and expertise.
 
Taxcient (formerly vAudit™ Group, Inc.), manages hundreds of thousands of exemption certificates as well as tax filing and compliance for a base of blue chip enterprise clients. Formed around a highly influential team of former state tax auditors, technologists, and financial systems industry executives, Taxcient built and deployed the most advanced ECM solution available in the market.
 
Avalara, a privately held company founded in 2004, has exploded into an emerging growth company with more than 7,000 client companies and tens of thousands of system users. The merger substantially enhances Avalara’s leading product offerings by injecting advanced technologies, expertise, and customers into the company’s dynamic business model. The move further solidifies Avalara’s position as the leading sales tax solutions provider for businesses of all sizes, from small businesses to the largest players in the e-commerce and brick-and-mortar merchant space.
 
In addition to the Taxcient merger, Avalara previously acquired Independent Systems and Programming, Inc. (ISPI, another sales tax automation industry leader) in 2008 and TrustFile, a major electronic filing firm, in 2007. Avalara is now the leading sales tax compliance provider, responsible for filing hundreds of thousands of sales tax returns and processing more than $10 billion to state and local tax authorities each year.
 
Founders of the merging companies have in common strong technology and tax backgrounds. “In terms of knowledge leadership and industry savvy, I couldn’t be more pleased to welcome Taxcient’s team into the Avalara family,” said Scott McFarlane, Avalara’s president and CEO, “particularly with its experienced team and proven leadership in both technology and sales tax. The merger takes the strengths of both companies and creates a definitive end-to-end solution that can eliminate the pain of sales tax compliance for a business of any size.”
 
“We are very excited about this merger and the impact it will have on our business, our customers, and our investors,” said Robert Schulte, Taxcient’s chief strategy officer and founder. “Our companies offer remarkably complementary strengths, and we believe the combined entity is bound to dramatically alter the landscape of our industry.”
 
Taxcient Chairman Bill Harris will join Avalara’s Board of Directors. “This is a bold move with broad industry ramifications tied to solving major tax-related issues for business customers with point-and-click ease,” said Harris, who served as president of Chipsoft (developers of TurboTax), CEO of Intuit, and CEO of PayPal. “Through the years, our investment model has been built around fundamentally transforming the way things are done in an industry, and I believe we are poised to do it again in the sales and use tax space.”
 
McFarlane concluded, “This merger allows us to offer enterprise-level exemption certificate management functionality to the SMB market, exactly as we’ve done in the sales tax calculation and filing arenas.” 
 
About Avalara
Based in Bainbridge Island, WA, Avalara is transforming the sales and use tax compliance process for businesses of all sizes. With point-and-click ease, Avalara provides the fastest, easiest, most accurate, and affordable way for companies to address their statutory tax requirements. Chosen by nearly 10,000 businesses throughout the U.S., Canada, and abroad, and a trusted provider of over 200 million sales tax calculations annually, Avalara is the recognized leader in web-based sales tax services and solutions. For more information, please visit www.avalara.com or contact Althea Azeff.