ADP Divests Taxware, Sea Change in Sales Tax Industry
- Sales Tax News
- Nov 13, 2012 | Rachael Brownell
At first glance, the implication of acquisitions in the sales and use tax solutions sphere might seem superfluous to the company who wants merely to outsource business functions such as payroll and sales tax and then forget it. Yet turbulence in the sales and use tax automation industry is significant enough to merit attention.
ADP's divestiture of the Taxware sales tax solution to Vista Equity Partners--a private equity firm focused on investing in software and technology--is just the latest in a series of big changes in the world of sales tax software. These changes include:
- Thomson Reuters purchases Sabrix –Thomson Reuters, a Canadian media and financial data firm, acquires Sabrix.
- CCH purchases SpeedTax –Commerce Clearing House, a Wolters Kluwer business acquires SpeedTax. CCH is a provider of software and information services for tax, accounting and audit workers.
As the dust settles on these and other key changes within the industry, it is unclear whether companies acquired by often unrelated larger conglomerates will remain sufficiently tooled and focused on providing high quality sales and use tax management products to their customers.
Avalara’s singular focus on sales and use tax stems from the belief that sales and use tax automation for businesses is a full-time job, requiring specialized and custom support scaled to the needs of each customer. The increased demand from companies of all sizes to have a global solution requires companies such as Avalara to continually enhance offerings to comply with national and international tax requirements. Count on Avalara to stay focused on only one thing: making solutions that work for growing companies.