AvidXchange acquired by TPG for $2.2 billion
AvidXchange agrees to a $2.2 billion acquisition by TPG and Corpay, taking the company private.
CHARLOTTE, N.C. — AvidXchange Holdings, Inc., a leading provider of accounts payable automation software, announced Wednesday it has agreed to be acquired by global alternative asset manager TPG and payment solutions company Corpay in a deal valued at $2.2 billion.
Under the terms of the agreement, AvidXchange shareholders will receive $10.00 per share in cash, representing a 22% premium over the company’s closing price of $8.20 on May 6. The deal will take the NASDAQ-listed company private.
TPG, through its private equity platform TPG Capital, will acquire a majority stake in AvidXchange, while Corpay will take a minority position in the company, according to the announcement.
“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,” said Michael Praeger, CEO of AvidXchange.
The Charlotte-based company, founded 25 years ago, has built a reputation as a leader in AP automation and payment software, serving over 8,500 middle-market businesses.
John Flynn, Partner at TPG, cited a “very large opportunity for businesses to improve their accounts payable processes through automation” as a key driver behind the acquisition.
“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,” Flynn said.
The purchase price also represents a 45% premium over AvidXchange’s closing price of $6.89 on March 12, the last trading day before media reports emerged about a potential transaction involving the company.
Ron Clarke, Chairman and CEO of Corpay, described AvidXchange’s suite of AP automation solutions as “highly complementary to our corporate payments business.”
The transaction comes amid growing demand for digital payment solutions and financial automation software as businesses seek greater efficiency and security in their financial operations.
The deal, which remains subject to customary closing conditions including regulatory approvals and AvidXchange shareholder approval, is expected to close in the second half of 2025.
Following completion of the transaction, AvidXchange will continue to operate under its current management team led by Praeger, with additional flexibility to invest in growth initiatives as a private company.