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CHARLOTTE, N.C. - AvidXchange Holdings, Inc. (NASDAQ: AVDX), a provider of accounts payable automation software and payment solutions, has agreed to be acquired by global alternative asset firm TPG in partnership with Corpay, a leader in corporate payments. The agreement, announced today, stipulates a purchase price of $10 per share, valuing the company at approximately $2.2 billion. According to InvestingPro data, the company currently trades at a market capitalization of $1.7 billion and maintains a robust gross profit margin of 72.26%, demonstrating strong operational efficiency.
The transaction, which is expected to close in the fourth quarter of 2025, will result in AvidXchange becoming a privately held entity. This move is set to offer the company increased flexibility to invest in growth and further develop integrated payment solutions aimed at enhancing efficiency and control for their customers. The company has demonstrated solid growth potential, with InvestingPro analysis showing revenue growth of 15.29% in the last twelve months and an overall Financial Health score of GOOD.
According to Michael Praeger, CEO of AvidXchange, the acquisition by TPG and Corpay represents a strategic step that will deliver significant value to AvidXchange shareholders while ensuring long-term growth and success for its customers. Praeger emphasized AvidXchange’s 25-year history as a leader in AP automation and payment software, expressing confidence in the company’s future growth under the new ownership.
TPG will acquire a majority interest in AvidXchange through its U.S. and European private equity platform, TPG Capital, while Corpay will obtain a minority stake. The purchase price offers a 22% premium over AvidXchange’s closing price on May 6, 2025, and a 45% premium over the closing price on March 12, 2025.
John Flynn, Partner at TPG, highlighted the vast opportunity for businesses to improve their accounts payable processes through automation, praising AvidXchange for providing differentiated payment networks and tools that integrate seamlessly into workflows.
The transaction has received unanimous approval from the independent members of AvidXchange’s Board of Directors. It is subject to customary closing conditions, including approval from AvidXchange shareholders and regulatory clearances. Notably, there are no financing conditions attached to the deal.
In light of the acquisition announcement, AvidXchange has canceled its earnings conference call originally scheduled for May 7, 2025, following the release of its first-quarter financial results. For investors seeking deeper insights into AvidXchange’s financials and growth prospects, InvestingPro offers comprehensive analysis through its Pro Research Report, available alongside 1,400+ other US equities, providing essential metrics and expert analysis for informed investment decisions.
This acquisition is based on a press release statement and has not been independently verified.
In other recent news, AvidXchange has introduced new AI tools aimed at enhancing invoice management efficiency for finance professionals. These updates include features like the AI Approval Agent and AI PO Matching Agent, designed to streamline the accounts payable process by predicting invoice approvals and automating purchase order matching. Meanwhile, the company is reportedly in the early stages of exploring a potential sale, with Keefe, Bruyette & Woods maintaining a Market Perform rating and an $8.00 price target amidst these developments. Barclays has downgraded AvidXchange’s stock from Overweight to Equal Weight, citing concerns over fiscal year 2025 guidance that did not meet expectations and ongoing macroeconomic challenges. Similarly, Piper Sandler has reduced the price target to $8.00, reflecting a cautious outlook due to the company’s conservative growth projections for 2025. Keefe, Bruyette & Woods also adjusted their price target to $8, maintaining a Market Perform rating, influenced by AvidXchange’s retention rates and the uncertain economic landscape. Despite these challenges, AvidXchange’s management remains optimistic about new partnerships and revenue potential from their Payment Accelerator 2.0 and Spend Management platforms.
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