AvidXchange is set to be acquired for approximately $2.2bn by investment firm TPG, in partnership with corporate payments provider Corpay.
Listed on Nasdaq, AvidXchange is a provider of accounts payable (AP) automation software and payment solutions.
The agreement will see its shareholders receive $10 in cash per share.
Under the terms of the transaction, TPG will take a majority ownership stake in AvidXchange via its TPG Capital platform, while Corpay will acquire a minority interest.
The offer price represents a 22% premium over AvidXchange’s closing share price of $8.2 on 6 May 2025. It is also a 45% premium compared to its $6.89 closing price on 12 March 2025, the final trading day before reports of a potential deal began to circulate.
AvidXchange CEO Michael Praeger said: “We are pleased to have reached an agreement that delivers significant value for AvidXchange stockholders and positions our business for long-term growth and success for our valued customers.
“Over the last 25 years, AvidXchange has established itself as a leader in AP automation and payment software by building a differentiated platform primed for growth.
“With TPG and Corpay, we will have the resources and long-term focus to scale our platform and provide more innovative solutions that help our customers across the country transform their accounts payable processes.”
Once the deal closes, AvidXchange will become a privately held company. The acquisition has received unanimous backing from the independent members of AvidXchange’s board of directors.
Senior management personnel have agreed to roll over a significant portion of their equity, aligning their interests with the new ownership structure.
Completion of the deal is expected in Q4 2025, subject to shareholder and regulatory approvals.
AvidXchange provides cloud-based accounts payable software and payment automation solutions tailored to mid-sized businesses and their suppliers.
The platform supports over 8,500 companies and has enabled payments to more than 1.35 million suppliers over the last five years. Its software digitises and automates invoice and payment processes to enhance operational control and visibility for clients.
Corpay, trading on the New York Stock Exchange (NYSE) delivers a suite of business payment services including commercial cards and automated invoice and payment tools. Its offerings are designed to improve transaction efficiency and support business spend management across global markets.
According to the parties, the move will give AvidXchange enhanced operational flexibility as a private entity and access to long-term strategic capital.
TPG partner John Flynn said: “There is a very large opportunity for businesses to improve their accounts payable processes through automation and become more efficient, more secure, and more accurate.
“AvidXchange is addressing this need, providing a differentiated payment network and end-to-end tools that integrate seamlessly into workflows, enabling strong connectivity between businesses and their suppliers.”
Financial Technology Partners and Barclays are acting as financial advisers to AvidXchange, while Latham & Watkins is providing legal counsel.
TPG has engaged J.P. Morgan Securities, Moelis & Company, and RBC Capital Markets as financial advisers, with legal support from Davis Polk & Wardwell and Schulte Roth & Zabel.
Corpay is being advised by Goldman Sachs and represented by Eversheds Sutherland in legal matters.
