TPG and Corpay have teamed up to acquire AvidXchange in an all-cash deal valued at $2.2bn, taking the payments firm private.
The firms will pay $10.00 per share for AvidXchange, marking a 22% premium over the company’s closing price on 6 May.
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TPG, via TPG Capital, will hold a majority stake in AvidXchange, while
Corpay will investment approximately $500m to take a 33% equity stake.
Some AvidXchange senior management team members will roll over a “significant” part of their equity in support of the deal.
AvidXchange, known for its SaaS-based accounts payable automation and payment solutions, caters to the middle market by digitising and automating AP workflows.
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By GlobalDataThe deal has secured green light from the AvidXchange board.
It is slated for completion in the fourth quarter of 2025, contingent upon shareholder and regulatory approvals, as well as other customary closing conditions.
Advising AvidXchange on financial matters are Financial Technology Partners and Barclays, with Latham & Watkins serving as legal advisor.
Goldman Sachs is the financial advisor to Corpay, with Eversheds Sutherland appointed as legal counsel.
TPG secured financial advice from J.P. Morgan Securities, Moelis & Company and RBC Capital Markets, while Davis Polk & Wardwell and Schulte Roth & Zabel offered legal advice.
AvidXchange CEO Michael Praeger said: “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.”
Corpay CEO and chairman Ron Clarke said: “We expect the transaction to be accretive to Corpay earnings in 2026, and the take-private transaction structure gives the company the flexibility to transform and accelerate profit growth. We have the option to buy the rest of the company in 2028.”
This follows the announcement of a $300m investment by Mastercard for an equity stake of nearly 3% in Corpay’s cross-border business, valuing the unit at $10.7bn.
