AvidXchange shares surge on acquisition deal

Published 07/05/2025, 14:54
© Reuters.

Investing.com -- AvidXchange Holdings , Inc. (NASDAQ:AVDX) stock soared 18% following the announcement that it has entered into a definitive agreement to be acquired by TPG in partnership with Corpay for $2.2 billion. The transaction is set to value the accounts payable automation software provider at $10.00 per share, which is a 22% premium over its closing price on May 6, 2025, and a significant 45% premium over its March 12, 2025 closing price.

The acquisition by TPG, a global alternative asset management firm, and Corpay, a leader in corporate payments, represents a strategic move that will result in AvidXchange becoming a private entity. This change is anticipated to grant the company increased flexibility to invest in growth and enhance its integrated payment solutions, thereby improving efficiency, visibility, and control for its customers.

Michael Praeger, CEO of AvidXchange, expressed satisfaction with the agreement, stating that it not only delivers substantial value to stockholders but also positions the business for long-term growth and success. Praeger highlighted AvidXchange’s 25-year history as a leader in AP automation and payment software and its potential for further expansion with the support of TPG and Corpay.

TPG partners John Flynn and Tim Millikin both recognized AvidXchange’s role as a distinct leader in the AP automation space, emphasizing the vast opportunity for businesses to enhance their accounts payable processes through automation. They are looking forward to partnering with AvidXchange and Corpay to support and accelerate the platform’s growth.

Ron Clarke, Chairman and CEO of Corpay, also expressed enthusiasm for the partnership, noting the complementary nature of AvidXchange’s AP automation solutions to Corpay’s corporate payments business.

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 stockholders and regulatory approvals, with an expected completion in the fourth quarter of 2025. Notably, there are no financing conditions attached to the transaction, and certain members of the AvidXchange senior management team have agreed to rollover a significant portion of their equity in support of the deal.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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