Avalara has announced the appointment of Hugo Sarrazin as its new Chief Executive Officer, marking a significant leadership transition for one of the world’s leading tax and compliance technology providers.
Effective immediately, Sarrazin succeeds Avalara co-founder Scott McFarlane, who will transition into an advisory role after leading the company for more than two decades.
The appointment comes as businesses face increasing complexity in global tax compliance, driven by expanding e-invoicing mandates, real-time reporting requirements, digital tax administration initiatives, and the growing adoption of artificial intelligence.
A New Chapter for Avalara
Sarrazin brings more than 30 years of experience in technology leadership, digital transformation, and business growth. Most recently, he served as President and CEO of Udemy, where he led product innovation and AI-driven initiatives while overseeing the company’s strategic growth.
Prior to Udemy, he held executive leadership roles at UKG and spent 26 years at McKinsey & Company, where he advised global organizations on technology transformation, mergers and acquisitions, and innovation strategies.
In his new role, Sarrazin will oversee Avalara’s global operations and strategic direction, with a focus on scaling the business, strengthening execution, and accelerating innovation for customers and partners worldwide.
Scott McFarlane’s Legacy
Since co-founding Avalara in 2004, Scott McFarlane has transformed the company from a startup into a global tax technology leader.
Under his leadership, Avalara:
- Expanded to support more than 1 million businesses worldwide
- Built an ecosystem of over 1,400 integrations
- Achieved more than $1.3 billion in annual revenue
- Processed over 54 billion transactions annually
- Successfully completed its IPO in 2018
- Established itself as a trusted provider of cloud-based tax compliance solutions
McFarlane also played a key role in positioning Avalara for the future by driving investments in artificial intelligence and automation technologies.
AI at the Center of Avalara’s Strategy
The leadership transition reflects Avalara’s continued focus on AI-powered tax and compliance solutions.
The company has been investing heavily in technologies designed to automate complex compliance processes, including tax determination, return preparation, filing obligations, exemption certificate management, and regulatory monitoring.
Through initiatives such as Agentic Tax and Compliance™, Avalara aims to embed AI directly into the compliance lifecycle, enabling businesses to achieve greater accuracy, efficiency, and scalability in an increasingly complex regulatory environment.
As governments around the world accelerate digital transformation programs and tax authorities adopt real-time data collection and reporting mechanisms, AI is expected to become a critical component of modern compliance operations.
What This Means for the Tax Technology Market
Avalara’s leadership change highlights a broader trend across the tax technology sector. Organizations are increasingly seeking solutions that combine regulatory expertise, proprietary tax content, automation, and artificial intelligence to manage growing compliance obligations.
With Hugo Sarrazin taking the helm, Avalara appears well-positioned to further strengthen its market leadership while accelerating innovation in AI-enabled tax and compliance technology.
As digital tax administration continues to evolve globally, the company’s next chapter is likely to focus on helping businesses navigate compliance requirements through more intelligent, automated, and real-time solutions.
The appointment of Hugo Sarrazin as CEO marks an important milestone for Avalara. While Scott McFarlane leaves behind a remarkable legacy of growth and innovation, Sarrazin’s experience in technology, product development, and AI-driven transformation positions the company for its next phase of expansion.
For businesses, tax professionals, and compliance leaders, the move signals that AI will remain at the center of Avalara’s strategy as the future of tax compliance becomes increasingly digital, automated, and intelligent.