Avalara is acquiring Manchester startup Versori in an AI-driven merger deal

US tech group Avalara has acquired Manchester-based integration startup Versori in a deal that underlines the growing international popularity of the UK’s regional tech sector.

The value of the deal was not disclosed, but it includes Versori’s proprietary technology platform and its 23-strong team. Co-founders Sean Brown and Daniel Jones will remain with the business, which will operate under the name “Versori, by Avalara”.

Founded in 2022, Versori focuses on next-generation integration technology, enabling companies to connect complex systems such as ERPs, ecommerce platforms, marketplaces and financial applications with high speed and automation. The company raised $10.5 million in previous funding and graduated from the Y Combinator accelerator program in March 2023.

Sean Brown said the acquisition is very much in line with Versori’s founding vision.

“We want Versori to coordinate global initiatives. That was the mission statement from day one,” he said. “As we were going through a growth period we were facing another round of investment, but Avalara was already a customer and the strategic fit was very strong.”

Avalara describes itself as a “agent” tax and compliance leader, providing automated tax accounting, reporting and compliance solutions to more than 200,000 clients in 75 countries. Its long-term ambition is to embed real-time compatibility, which is always on top of global commercial systems.

Scott McFarlane, chief executive officer and co-founder of Avalara, said the acquisition will greatly accelerate that ambition.

“Global compliance depends on seamless, reliable integration,” he said. “Versori’s technology and team dramatically accelerates our ability to connect to global commercial systems quickly, at scale, using intelligent, AI-driven automation that meets the reliability and accuracy of global compliance requirements.”

This move reinforces Avalara’s integrated platform strategy, especially as regulatory complexity grows globally and multinational enterprises seek automated, test-ready compliance solutions that are embedded directly into business operations.

The Versori platform uses an automation-first architecture to reduce the time and engineering resources required to build and maintain integrations. Using artificial intelligence, the system can simplify deployment and ongoing maintenance, making it attractive to businesses operating in multiple locations and on social media.

Since its launch, Versori has worked with high-profile organizations including Frasers Group, Macy’s and the UK Ministry of Defence. Its growth trajectory has made it one of the fastest growing business software startups in Manchester.

Brown said the acquisition shows Manchester can produce globally competitive technology businesses.

“It’s proof that Manchester can grow companies like Versori,” he said. “I hope it will bring more investment to Manchester and more talent. I’ve never done it for rewards. I love building things and I’m looking forward to continuing to build things with Versori. I have a lot of unfinished business.”

The deal also shows continued US interest in UK AI and business software firms, particularly those based out of London. Manchester’s tech ecosystem has grown rapidly in recent years, supported by university spinouts, venture capital inflows and accelerator programs.

For Avalara, the acquisition adds integration capabilities enabled by advanced AI at a time when global tax and compliance requirements are becoming more and more complex. The company has spent more than two decades building the most extensive library of tax content and system integration in the industry. Integrating Versori’s automation technology is expected to improve speed, scalability and reliability across the network.

Both companies indicated that integration work has begun, with Versori’s technology forming a key part of Avalara’s drive toward AI compliance systems that operate continuously and autonomously within the world’s commercial infrastructure.