AVLR - Avalara likely on many `short lists' for a potential acquisition
- Avalara ( NYSE: AVLR ) is likely on many "short lists" as a potential target for an acquisition, according to BMO, after a Street Insider story on Thursday that the tax software company was approached by a private equity firm.
- "With more active financial sponsor activity in software we think Avalara was on many “short lists” for a potential transaction," BMO analyst Daniel Jester , who has an outperform rating and $93 price target on AVLR, wrote in a note Thursday.
- Investors may look to Anaplan's recent sale to PE firm Thoma Bravo, which was sold for ~10.5 forward sales, as a comparison for Avalara ( AVLR ), according to Jester. Since the original deal was made in March, software multiples dropped another ~5-15%, which likely lowers expectations around a potential Avalara deal pricing into the "high single digit" on an EV/Sales basis.
- Avalara jumped 16% on Thursday after the report that the tax software provider is said to have been approached about a takeover from private equity frim Vista Equity Partners.
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Avalara likely on many `short lists' for a potential acquisition