Avalara Partners with GlobalCollect, Nabs $100 Million in New Financing
Nov. 13, 2014
Avalara, a technology provider that automates tax computation and compliance for e-commerce businesses, made two major announcements this week. The Bainbridge Island, Wash.-based company announced a strategic partnership with Dutch PSP GlobalCollect ( acquired this summer by Ingenico) only a day after it had revealed a $100 million investment by an affiliate of private equity firm Warburg Pincus.
Under the agreement with GlobalCollect, the e-commerce processor will make Avalara’s tax compliance solutions available to its merchant clients engaged in cross-border e-commerce.
“Working together, GlobalCollect and Avalara are helping to relieve merchants’ burdens on international contracts, currency conversions, reconciliation, VAT calculation and management,” said Matthijs Pronk, vice president of business development at GlobalCollect. “Supporting them with payment products driven by deep knowledge of local payment culture means that merchants can focus on what they do best: offering great products and services online, internationally, knowing that complex payment and tax related challenges are being handled by the specialists.”
Regarding the capital raise, Avalara said it will employ the funds for further international expansion and growth through strategic acquisitions, “which will extend the company’s tax content, product and service offerings, customer base, cross-selling opportunities, and geographic reach.” Including the investment by Warburg Pincus, Avalara has raised more than $200 million since 2004.