US fintech AvidXchange has agreed to be acquired by asset management firm TPG in partnership with Atlanta-based corporate payment solutions provider Corpay in a deal worth $2.2 billion.
AvidXchange is a payments firm that specialises in accounts payable solutions for mid-sized companies and their suppliers. The company serves over 8,500 clients and counts Sixth Street Partners, Mastercard and PayPal co-founder Peter Thiel among its backers.
The cash transaction will see TPG and Corpay acquire AvidXchange for $10 per share, representing a 22% premium over its 6 May closing price.
TPG is set to pick up a majority stake in AvidXchange through its private equity platform TPG Capital, while Corpay will invest approximately $500 million for a minority 33% equity stake.
In an earnings call on 6 May, Ron Clark, chairman and CEO of Corpay, stated that the agreement with TPG “does provide us a call option to acquire the remaining equity of Avid down the road”.
Certain unnamed members of AvidXchange’s senior management team have also agreed to support the acquisition by rolling over “a significant portion of their equity”, according to the acquisition announcement by TPG.
The deal has been approved by the independent members of the AvidXchange board of directors and is expected to close by Q4 2025, pending regulatory and AvidXchange stockholder approval.
Once finalised, AvidXchange will become a private company and delist from Nasdaq, where it has been trading publicly since October 2021.
The acquisition comes days after it was revealed that Mastercard had picked up a minority stake in Corpay’s cross-border payments business for $300 million.
Source: https://www.fintechfutures.com/
