AvidXchange to be Acquired by TPG and Corpay for $2.2 Billion
Deal News | May 06, 2025 | Globenewswire
AvidXchange Holdings, Inc., a premier provider of accounts payable (AP) automation software, has announced a definitive agreement to be acquired by TPG, a global alternative asset management firm, in collaboration with Corpay, a leader in corporate payments. This deal values AvidXchange at $2.2 billion, with TPG purchasing a majority stake and Corpay a minority one. The agreed price of $10 per share represents a notable premium over recent stock values. Post-acquisition, AvidXchange will be a private entity, allowing it to focus on expanding its AP automation solutions and integrated payment service landscape. The agreement aligns with TPG's technological focus and Corpay’s strategic goals. The acquisition awaits standard closing conditions and regulatory approvals, with a closing target in Q4 2025. Key advisors in this transaction include Financial Technology Partners, Barclays, J.P. Morgan Securities, and legal firms like Latham & Watkins LLP.
Sectors
- Financial Technology
- Private Equity
- Corporate Payments
Geography
- United States – AvidXchange is based in Charlotte, NC, and the announcement and strategic operations are primarily centered in the U.S.
Industry
- Financial Technology – AvidXchange operates in the Financial Technology sector, offering AP automation software that digitizes and automates business payment workflows.
- Private Equity – TPG, a global alternative asset manager, is acquiring a majority stake in AvidXchange, representing Private Equity involvement in this transaction.
- Corporate Payments – Corpay is involved in the transaction, focusing on corporate payment solutions, aligning with its strategic interests.
Financials
- $2.2 Billion – Total valuation of the acquisition deal for AvidXchange by TPG and Corpay.
- $10.00 per share – Purchase price per share in the acquisition.
- 22% – Premium over AvidXchange's closing price of $8.20 as of the agreement date.
- 16% – Premium over the 90-day volume-weighted average price of AvidXchange stock.
- 45% – Premium over AvidXchange's closing price of $6.89 before media reports of a potential transaction.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| AvidXchange Holdings, Inc. | Target Company | Company | A leading provider of accounts payable automation software and payment solutions for middle market businesses. |
| TPG | Bidding Company / Buyer | Company | A global alternative asset management firm acquiring a majority stake in AvidXchange. |
| Corpay | Bidding Company / Buyer | Company | Global leader in corporate payments acquiring a minority stake in AvidXchange. |
| Financial Technology Partners | Financial Advisor to AvidXchange | Company | Provided financial advisory services to AvidXchange in the transaction. |
| Barclays | Financial Advisor to AvidXchange | Company | Acted as a financial advisor to AvidXchange. |
| Latham & Watkins LLP | Legal Advisor to AvidXchange | Company | Provided legal advisory services for AvidXchange. |
| J.P. Morgan Securities LLC | Financial Advisor to TPG | Company | Provided financial advisory services to TPG. |
| Moelis & Company | Financial Advisor to TPG | Company | Acted as a financial advisor to TPG. |
| RBC Capital Markets | Financial Advisor to TPG | Company | Provided financial advisory services to TPG. |
| Davis Polk & Wardwell LLP | Legal Advisor to TPG | Company | Provided legal counsel to TPG. |
| Schulte Roth & Zabel LLP | Legal Advisor to TPG | Company | Acted as legal counsel to TPG. |
| Goldman Sachs | Financial Advisor to Corpay | Company | Provided financial advisory services to Corpay. |
| Eversheds Sutherland | Legal Advisor to Corpay | Company | Served as legal counsel to Corpay. |