Talis Capital is pleased to announce that digital portfolio company, FuelQuest Inc., market leading SaaS provider of on-demand fuel management and tax automation software for the downstream energy industry, has completed the sale of its subsidiary business Zytax to Avalara Inc.
FuelQuest’s highly successful disposal of Zytax represents one of the first exits in the digital sector for Talis Capital investors. Talis Capital, also the exclusive advisor to Beyond Digital, completed a $10m Series A round for FuelQuest in 2012. Beyond Digital focusses on high growth technology companies, in areas such as Financial Technology, Mobile, Data Analytics and Cyber Security.
FuelQuest solutions help customers manage complexity, regulation and market volatility for more than 22 billion gallons of gasoline and diesel fuel annually. Zytax provides retail fuel and energy companies with a single solution to their transactional tax processing requirements. Avalara is a global market leader in sales tax automation, processing billions of sales tax transactions for thousands of businesses spanning over 100 countries worldwide.
Fuel management solutions remain the core focus for FuelQuest, as the business pursues further expansion of the industry-leading fuel management automation software. With a market-leading SaaS product, FuelQuest drives operational cost savings for its customers by optimising inventory management, centralising supply contracts and improving price determination. With scalable automation of the key aspects of the fuel management process, suppliers, distributors and buyers rely upon FuelQuest to manage billions of gallons of fuel annually.
Phil Fraher, CEO of FuelQuest said “This divesture of our tax business, along with a long-term licence agreement for tax calculator capabilities within our FMS product, enables FuelQuest to invest fully in the core business upon which it was originally founded. Fuel price volatility and supply chain disruptions present daily challenges to fuel-centric businesses. Rising competition and operations costs expose inefficiencies within the fuel supply chain.”
Vasile Foca, director and co-founder of Talis Capital said, “This exciting transaction underlines the strong progress made by our digital portfolio companies over the past twelve months. The strong team at FuelQuest are well-placed to capitalise on further opportunities to create value for our investors.”
Matus Maar, director and co-founder of Talis Capital added, “Exits are always well received by our investors, particularly in high growth technology sectors such as those targeted by Beyond Digital. We look forward to emulating the success achieved by the FuelQuest team, in partnership with the management teams across the digital ventures portfolio.”