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Avalara swung to loss of 2 cents per share in its second quarter.
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Avalara
shares were sliding Monday after the cloud-based provider of tax management services announced that it will be acquired by Vista Equity Partners.
The investment firm will acquire all outstanding shares of
Avalara
(ticker: AVLR) common stock for $93.50 per share in an all-cash transaction valued at $8.4 billion, including Avalara’s debt. This deal is expected to close in the second half of 2022, making Avalara a private company.
“In partnering with Vista, Avalara will look to build on its successful platform by refining its go-to-market strategy, expanding its international workforce, streamlining its systems architecture, and continuing to pursue value-accretive M&A opportunities,” Avalara said in a news release.
But despite the acquisition news, shares of Avalara were trading 3.8% lower to $91.92 on Monday. The stock has fallen 29% in 2022.
Avalara reported a loss of 2 cents a share for its second quarter, which was narrower than the loss of 7 cents analysts tracked by FactSet had expected. In the year-earlier quarter, Avalara earned 2 cents a share, while it had a profit of 8 cents a share in the first quarter.
Second-quarter revenue was $208.6 million,while the Wall Street consensus call was $205.8 million, according to FactSet.
The company canceled a conference call it had scheduled to discuss its results. Management said it won’t provide financial forecasts because of the transaction with Vista Equity Partners.
Write to Angela Palumbo at angela.palumbo@dowjones.com
