Performant Capital, a Chicago-based private equity firm renowned for its strategic investments in software and technology-enabled service companies, today announced that its portfolio company, BevLogic, will acquire select beverage alcohol compliance technology assets from Avalara, Inc. This transaction is focused on regulatory compliance solutions designed specifically for wineries and other beverage alcohol producers, enhancing BevLogic’s already robust suite of offerings.
BevLogic, originally founded in 1997 under the name Compli, has grown into a leading provider of software and services that enable beverage alcohol producers to navigate the increasingly complex regulatory landscape. By acquiring Avalara’s beverage alcohol compliance assets, BevLogic is set to broaden its capabilities in areas including returns and reporting, licensing, and product registration. These solutions are critical for beverage producers who must meet stringent federal, state, and local regulations while efficiently managing operational demands.
Rachel Dumas Rey, the Founder of BevLogic, will continue to lead the company as Chief Executive Officer. Under her leadership, BevLogic has established a reputation for combining deep industry knowledge with innovative software solutions that simplify regulatory compliance for wineries, breweries, distilleries, and other beverage alcohol producers. Rey’s vision is to create a comprehensive, end-to-end compliance platform that reduces administrative burdens, mitigates risk, and supports the growth of the beverage alcohol industry.
Michael Ciaglia, Partner at Performant Capital, emphasized the strategic nature of the acquisition, stating, “We are thrilled to partner with Rachel Rey to acquire these beverage alcohol compliance solutions from Avalara and provide growth capital to strategically position BevLogic for continued success. This investment reflects Performant Capital’s ongoing commitment to supporting founders who have built mission-critical software businesses where our operational expertise can accelerate growth.”
Ciaglia further highlighted the appeal of the beverage alcohol industry, noting that the regulatory compliance environment is both highly specialized and increasingly complex. “BevLogic offers the most comprehensive solution in this space, incorporating returns, licensing, and product registration in a single platform,” he explained. “This transaction allows us to expand those capabilities further, ensuring that BevLogic remains the trusted compliance partner for beverage alcohol producers nationwide.”
For Rachel Rey, the acquisition represents a significant milestone in BevLogic’s evolution. “I am proud to reunite with the industry’s leading team to serve hundreds of beverage alcohol producers who rely on BevLogic for regulatory compliance expertise,” she said. “Partnering with Performant Capital was a deliberate choice. Their founder-centric approach, deep domain expertise in the beverage alcohol industry, and commitment to investing in future product growth made them the ideal partner for this next chapter.”
Rey emphasized that the acquisition will enhance BevLogic’s ability to deliver best-in-class support to its customers. “Our goal has always been to simplify regulatory compliance while providing unparalleled service. With Performant Capital’s backing, we can accelerate development of our software platform, expand our capabilities, and continue to deliver exceptional value to our clients,” she noted.
BevLogic’s software platform offers a wide range of compliance solutions tailored to the beverage alcohol industry. These include tools for preparing and filing federal and state alcohol returns, managing licensing requirements, and registering products with regulatory authorities. By integrating these functions into a single platform, BevLogic helps producers reduce operational complexity, minimize errors, and ensure timely compliance with regulatory mandates.
The transaction excludes Avalara’s AvaTax for Beverage Alcohol, a cloud-based sales tax calculation product, which will remain under Avalara’s ownership. Specific financial terms of the deal have not been disclosed. However, industry observers note that the acquisition aligns with a broader trend in the beverage alcohol sector, where companies are increasingly investing in technology solutions that streamline compliance, reporting, and operational efficiency.
Performant Capital’s investment philosophy emphasizes partnering with software companies that have a clear market leadership position and offer scalable solutions. By providing growth capital and operational expertise, the firm helps portfolio companies like BevLogic accelerate product development, expand market reach, and enhance overall value creation. In BevLogic’s case, Performant Capital’s support will enable the company to continue innovating within a rapidly evolving regulatory landscape.
The acquisition is expected to benefit beverage alcohol producers of all sizes, from small boutique wineries to larger commercial operations. As regulatory requirements become more complex, having a trusted compliance partner is increasingly important for maintaining operational efficiency and avoiding penalties. BevLogic’s expanded suite of solutions will allow producers to focus on their core business—creating high-quality beverages—while relying on BevLogic to manage the regulatory and administrative workload.
Industry analysts also highlight that the beverage alcohol market continues to experience strong growth, with new entrants and product innovations driving demand for robust compliance solutions. BevLogic’s comprehensive platform, now enhanced with Avalara’s selected assets, positions the company to capture a larger share of this growing market while reinforcing its reputation as the go-to compliance provider for beverage producers.
In addition to software solutions, BevLogic has built a reputation for customer service excellence. The company provides dedicated support teams to help clients navigate complex filing requirements, troubleshoot software issues, and ensure that all regulatory obligations are met on time. With the acquisition, BevLogic plans to further strengthen its support infrastructure, ensuring that both existing and new clients receive consistent, high-quality service.
Looking ahead, the partnership between BevLogic and Performant Capital is expected to drive continued innovation within the regulatory compliance sector. By leveraging Performant Capital’s operational expertise and growth capital, BevLogic can accelerate development of new features, integrate advanced technologies such as automation and analytics, and expand its service offerings to meet evolving industry needs.
“Regulatory compliance is not just a requirement; it’s a strategic enabler for growth in the beverage alcohol industry,” Rey emphasized. “By simplifying compliance, we empower our clients to focus on innovation, scale their operations, and build stronger brands. This acquisition is a key step in delivering on that promise.”
With this strategic acquisition, BevLogic is poised to solidify its position as the premier provider of regulatory compliance solutions for beverage alcohol producers. The company’s expanded capabilities, combined with Performant Capital’s support, set the stage for accelerated growth, enhanced product offerings, and continued leadership in the industry.
In summary, the acquisition of select Avalara beverage alcohol compliance assets by BevLogic represents a transformative step for the company, its clients, and the broader industry. Backed by Performant Capital, BevLogic is uniquely positioned to deliver comprehensive, innovative, and reliable compliance solutions, ensuring that beverage alcohol producers can operate confidently in an increasingly complex regulatory environment.
