AvidXchange to be bought by Corpay, TPG for $2.2B

AP automation solutions provider AvidXchange has agreed to be bought for $2.2 billion by TPG, a global asset management firm, and Corpay, a payment solutions company. TPG will acquire a majority interest while Corpay will acquire a minority interest.

The two companies will acquire AvidXchange for $10 per share in a cash transaction. The purchase price represents a 22% premium over the company's closing price of $8.20 on May 6, 2025, a 16% premium over the 90-day volume weighted average price as of the same date, and a 45% premium over the $6.89 closing price as of March 12, 2025, the last trading day before media reports of a potential transaction involving the company. 

Upon completion of the transaction, AvidXchange will become a private company. 

"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 AvidXchange CEO Michael Praeger. "Over the last 25 years, AvidXchange has established itself as a leader in AP automation and payment software by building a differentiated platform primed for growth. 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."

Certain members of the AvidXchange senior management team have agreed to rollover a significant portion of their equity in support of the transaction. The transaction was unanimously approved by the independent members of the board of directors of AvidXchange.

The transaction is subject to customary closing conditions, including receipt of AvidXchange stockholder approval and required regulatory approvals, and is expected to close in the fourth quarter of 2025. There are no financing conditions to the transaction. Financial Technology Partners and Barclays are serving as financial advisors to AvidXchange. Latham & Watkins LLP is serving as the company's legal advisor. J.P. Morgan Securities LLC, Moelis & Company and RBC Capital Markets acted as financial advisors to TPG, and Davis Polk & Wardwell LLP and Schulte Roth & Zabel LLP acted as legal counsel to TPG. Goldman Sachs acted as financial advisor to Corpay, and Eversheds Sutherland acted as legal counsel to Corpay.

The announcement comes just a little over a month after the company launched new AI agents and enhancements for invoice and payment automation (see previous story). The first is an AI Approval Agent that analyzes patterns from past decisions to help users assess how likely an invoice is to be approved. Drawing on historical data like invoice amounts and supplier details, the agent provides insights to approvers throughout the AP workflow, as well as transparency into how each recommendation was made. The second is an AI PO Matching Agent that automates the process of matching line item details from invoices to purchase orders. Visual indicators provide insight into where the AI agent is assisting, which supports decision making while keeping customers in control. Finally, AvidXchange has expanded the AI capabilities within its Invoice Capture feature, allowing the software to continuously learn the unique patterns of the data across invoices, delivering approval-ready invoices. As the AI technology learns, it will apply those insights to future invoices.