Tax Tech Company Avalara Acquires CrowdReason

Financial details of the deal were not disclosed.
Written by Gordon Gottsegen
October 19, 2021Updated: October 24, 2021
Avalara team at New York Stock Exchange
Photo: Avalara

Seattle tax tech giant Avalara is on an acquisition spree. On Monday, Avalara announced its acquisition of another tax startup, CrowdReason. Exact financial terms of the deal were not disclosed.

Founded in 2004, Avalara has grown to be one of the larger players in the tax tech space. Taxes are unavoidable, and they can be a big headache for businesses if they aren’t managed properly. That’s why Avalara has designed an automated cloud-based platform to help businesses manage the tax compliance process. The platform handles a wide range of business taxes, including sales and transaction taxes, consumer use taxes, import taxes and more.

These tax solutions have helped Avalara grow to a large scale. The company serves over 30,000 customers and currently has a market cap around $15 billion. In 2019 alone, the company helped file over 2 million tax returns.

But Avalara is stetting its sights even bigger, and this latest acquisition of CrowdReason shows that. CrowdReason is a SaaS company that has developed compliance software for property taxes. By acquiring CrowdReason, Avalara hopes to integrate this software into its own product offering, in order to provide its customers with document management, tax database content and property tax services.

“Adding property tax content and software to our global compliance portfolio extends Avalara’s footprint into a large and exciting new tax type,” Avalara EVP of corporate development Jayme Fishman said in a statement. “Effective management of personal property and real property tax serves businesses of all sizes, especially enterprise companies and is another step forward in our pursuit to be the global compliance platform for businesses.”

CrowdReason CEO Carl Hoemke added, “CrowdReason built its business to help enterprise teams manage complexity and reduce the risk inherent to property tax management. We pride ourselves on best-in-class products, accuracy and customer service, and we are excited to contribute our expertise to Avalara’s customers.”

This is already Avalara’s second acquisition in the month of October. About two weeks ago, Avalara acquired Track1099, which provides software to manage, file and deliver IRS tax forms like W-2s, 1099s, W-9s and more. Before that, Avalara acquired sales tax automator DAVO Technologies. Avalara has made a pattern of acquiring other tech companies in the tax compliance space, allowing it to add more and more features to its already robust platform.

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