Merrion Investment Management Opposes Sale of Avalara to Vista Equity Partners

WESTFIELD, N.J., Sept. 15, 2022 /PRNewswire/ -- Merrion Investment Management Company ("MIMCo"), an SEC-Registered Investment Advisor that is a long-term owner of Avalara, Inc. (NYSE:  AVLR) ("Avalara" or "AVLR") today announced its opposition to the purchase of Avalara by Vista Equity Partners.

MIMCo issued the following statement:

Avalara, Inc. announced on August 8, 2022 that it had agreed to be acquired by Vista Equity Partners ("Vista") at a price of $93.50/share in cash.

Merrion Investment Management clients have been investors in AVLR common shares since October 2019.  Since then, AVLR has achieved extraordinary growth and has posted remarkable metrics among its software-as-a-service peer group, most notably in client retention and acquisition costs.  In addition, AVLR has managed its capital base in a manner that prepared the company well for the difficult market period now upon us.  A well-timed convertible bond offering and rapidly improving operating efficiency bring AVLR into late 2022 with ample liquidity.

AVLR is perfectly capable of remaining independent and has many years of profitable growth ahead.  In light of this, the Board of Directors' decision to conduct an auction at this time in a depressed and volatile macroeconomic market seems ill-advised.  The price agreed appears completely devoid of any control premium appropriate in this situation.

We intend to vote against the Vista transaction.

About Merrion Investment Management

Founded in 1989, Merrion is a research-based asset management firm based in Cranford, NJ.

Media and Investor Contact:

David Erb
1-908-654-0033

Disclaimer

This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein in any state to any person.  In addition, the discussions and opinions in this press release and the material contained herein are for general information only and are not intended to provide investment advice.  All statements contained in this press release that are not clearly historical in nature or that necessarily depend on future events are "forward-looking statements," which are not guarantees of future performance or results, and the words "anticipate," "believe," "expect," "potential," "could," "opportunity," "estimate," and similar expressions are generally intended to identify forward-looking statements.  The projected results and statements contained in this press release and the material contained herein that are not historical facts are based on current expectations, speak only as of the date of this press release and involve risks that may cause the actual results to be materially different.  Merrion Investment Management Company disclaims any obligation to update the information herein and reserves the right to change any of its opinions expressed herein at any time as it deems appropriate. 

SOURCE Merrion Investment Management