Sales Tax Leader Expects Momentum to Increase in 2012

Bainbridge Island, WA – February 3, 2012 – Avalara, the leader and visionary in sales tax automation for businesses of all sizes, today announced its original equipment manufacturer (OEM) partnerships increased a record 41% in 2011, bringing its total OEM partners to nearly 150 at the start of 2012.

Avalara’s OEM partners are software publishers that integrate Avalara’s efficiency-enhancing service for transactional tax management directly into their own applications, typically under their own brand name. Avalara’s partner applications span all platforms, including enterprise resource planning (ERP), point of sale (POS), ecommerce, mcommerce, compliance, and customer relationship management (CRM) systems.

“The rapid growth of our OEM partnerships represents a milestone on our quest to become the de facto transactional tax service provider across all applications and channels,” said Scott McFarlane, CEO and co-founder at Avalara. “We expect this growth to increase well into 2012 as new partners embed our cutting-edge technology into their industry-leading applications.”

Avalara augments its partnerships with one of the strongest value added reseller (VAR) channels in the small to midsized business (SMB) marketplace; its Channel Partner Program includes thousands of VARs and consultants who resell Avalara’s products and services as integrations into their primary offerings. Each year Avalara delivers millions of dollars in revenue share to its OEM partners, an amount that will continually increase as new software publishers come on board.

“Avalara got an early start and took a leadership role in showing SMB companies how to effectively manage indirect taxes through software automation,” said Randy Johnston, executive vice president at K2 Enterprises, a preeminent provider of technology-focused continuing professional education to accountants and other professionals. “Big name players all hope to do what Avalara has accomplished: 100% channel strategy across all types of applications. Avalara now appears to be in all the key places where transactional tax is being calculated.”


2011 Avalara OEM Partner Program Highlights

ERP: Open Systems, an accounting mainstay in the software market, joined Avalara’s A-list of leading ERP accounting vendors in June. Open Systems is integrating Avalara’s solution into two ERP products, OSAS and Traverse. In addition, Sage selected Avalara as its partner of choice for the Sage ERP X3 accounting package.

POS: Avalara added Microsoft Dynamics RMS, which offers small and midsize retailers a complete, customizable POS solution, to its growing list of POS connectors in 2011. Other additions include Tomax, a leading provider of innovative management solutions for the retail industry; and Radiant Systems, a subsidiary of NCR that specializes in POS solutions for the Hospitality, Retail, Petroleum, and Sports and Entertainment Industries.

Ecommerce: Magento, the world’s fastest-growing ecommerce shopping cart platform, became a ‘Gold Industry’ partner in 2011. Additionally, Avalara added connectors for 3DCart, PrestaShop, Ubercart, Drupal Commerce, Zen Cart and Demandware.

Mcommerce: Avalara signed an agreement with Inner Fence at year-end to bring its sales tax technology to mobile devices, making Avalara the first software-as-a-service (SaaS) provider to offer sales tax automation on-line, on location and on-the-go. Avalara is the first and only SaaS provider to develop and implement a sales-tax-specific geo-location engine, which uses latitude and longitude coordinates­ – instead of zip codes – to deliver the most accurate calculations available.

Compliance: In October Avalara expanded its reach to include 1099 compliance. Through an OEM partnership with Convey, Avalara introduced AvaTax 1099, a SaaS-based, fully-automated offering for 1099 filing.

CRM Deal of the Year: Avalara partnered with Accounting Seed, a 100% native full-accrual accounting system on the Force.com platform, to establish a connector to Salesforce.com, which offers customers the most complete set of transactional tax compliance services available.