If you feel like Avalara’s corporate status has given you whiplash, you’re not alone.
Many in the industry still remember the moment in 2018 when CEO Scott McFarlane and a crowd of orange-clad “Avalaraians” rang the opening bell on Wall Street. After years of rapid growth, the company officially became a publicly traded tax-technology player – until it didn’t.
In 2022, Avalara was taken private in an $8.4 billion acquisition by private-equity powerhouse Vista Equity Partners, pulling the company off the New York Stock Exchange. For two years it operated once again as a privately held entity – until the next turn.
In July 2025, Avalara announced plans to go public again, setting the stage for one of the more dramatic return-to-market stories in the SaaS space.
The Exodus
Since that announcement, a notable wave of departures has followed, including many long-time employees. The list we’ve compiled to date includes CFO-turned-President Ross Tennenbaum, who announced his new role as CFO at Dropbox on LinkedIn in mid-December. Other exits include Joo Sohn, Angela Goldsmith, Rosalinda Martinez, Kate Kenny, Sarah Simrell, Bridgette Mertren, Yvonne Lunceford, Erin Rauch, Kelleigh Lang, Brendan Peregrine, Kerry Alexander, and Brian Austin.
Some shared new destinations; others simply announced their goodbyes. And it’s likely the list isn’t complete – some departures may not have been spotted publicly, and others may be waiting until they can announce a landing spot.
The Sudden “Agentic AI” Pivot
Alongside these departures, Avalara’s market messaging has taken a sharp turn. Gone is the familiar cloud-compliance language that defined the company for more than a decade.
In its place is a bold repositioning: Avalara now calls itself the “agentic tax and compliance leader,” touting Agentic AI systems and large language models designed to automate filings and accelerate compliance workflows.
For partners and customers accustomed to predictable, incremental product evolution, the abrupt shift has prompted questions. Is this a strategic reinvention, or a rapid rebranding effort designed to reshape the company’s narrative ahead of an IPO?
The BlackRock Liquidity Event
Then came perhaps the most revealing moment: a $500 million equity investment led by BlackRock in November 2025.
The key detail wasn’t the size of the investment; it was the use of the funds. The proceeds were not directed toward R&D, product innovation, or partner programs. Instead, the announcement stated explicitly that the capital would be used to purchase shares from existing shareholders.
In other words, insiders were given a guaranteed path to cash out well before Avalara reenters the public markets in 2026.
What does the future hold?
As Avalara moves toward its anticipated return to the public markets, the combination of staff turnover, strategic rebranding, and liquidity events paints a picture of a company in transition.
Whether these shifts represent disciplined preparation for an IPO or signs of deeper volatility remains to be seen. What’s clear is that Avalara’s next chapter will be closely watched, not just by investors, but by customers and partners whose businesses depend on its stability.
