Business payments automation firm AvidXchange is going private through a $2.2 billion deal, with asset firm TPG acquiring a majority stake while Corpay takes a minority share.
TPG and Corpay will pay $10 per share in cash, reflecting a 22% premium on AvidXchange’s closing price from May 6 and a 45% premium over its price on March 12, just before reports of a potential sale emerged. TPG will hold a 67% stake, while Corpay will invest $500 million for a 33% share.
Founded in 2000, AvidXchange provides a platform that removes paper invoices and checks, offering various e-payment solutions for over 8,000 companies. The firm went public in 2021 but sought advisors this year to explore a sale as its share price declined.
“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,” stated Michael Praeger, CEO of AvidXchange.
Recently, Corpay received a cash injection when Mastercard invested $300 million for a 3% stake in its cross-border payments business. However, Corpay’s M&A efforts faced a setback as an all-cash bid for London-based financial services provider Alpha Group International was rejected by the board after careful consideration.