Westbrook fintech firm acquired by Seattle company
File photo / Tim Greenway
David Joseph, co-founder of DAVO Technologies, photographed last year at the firm's Westbrook headquarters at the Dana Warp Mill.
Avalara (NYSE: AVLR), a Seattle-based provider of tax compliance automation for businesses, has acquired Westbrook-based financial technology company DAVO Technologies for an undisclosed price, according to a news release Tuesday.
DAVO Technologies, headquartered at the Dana Warp Mill, provides automated sales tax management for 4,000 small businesses nationwide, including coffee shops, bike stores, flower shops, bakeries and restaurants.
The new owner, whose clients range from Bed Bath & Beyond to the New York Times, said the deal extends its strategy of developing integrated sales tax compliance processes that alleviate burdens for small businesses.
“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, Avalara's executive vice president of corporate development, said in the release. “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.”
DAVO CEO Pete Murray added, “This acquisition is an amazing opportunity for the DAVO team, partners, and especially our customers. There has never been a more important time to support the local business community — the backbone to local economic development and community support. We are confident that together with Avalara we can make their day-to-day even easier, so they can focus on their business and leave the sales tax to us."
On Wednesday, DAVO's co-founder David Joseph told Mainebiz that all of DAVO's 21 employees in Maine are transitioning to Avalara, and that talks that led to the transaction had been "in process for many months."
Joseph founded DAVO Technologies in 2014 after being frustrated by taxes as a New Jersey restaurant owner. He teamed up with a customer to apply for a patent that took a decade to come through, as he told Mainebiz in a 2019 interview.
Avalara said in the release that acquiring advanced technologies, tax content and expanded segment expertise has been core to the company's mission and growth strategy since its founding. "With the acquisition of assets from DAVO, Avalara furthers its vision of the global cloud compliance platform for businesses of all sizes."
The Seattle-base company has offices across the United States and in Brazil, Europe and India. Avalara is scheduled to report first-quarter results on May 6 after the stock market closes. Full-year revenue in 2020 was $500.6 million, up 31% over a year earlier.
As of Wednesday's market close, Avalara shares are valued at around $12 billion.
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Congratulations David, Peter and Davo Technologies!
Congratulations David, Peter and Davo Technologies!
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