AvidXchange, an accounts payable automation software and payment solutions provider, has agreed to be purchased by alternative asset management firm TBG and corporate payments provider Corpay for $2.2 billion, the companies said on Wednesday.
TPG will acquire a majority stake in Charlotte, NC-based AvidXchange through TPG Capital, the firm’s U.S. and European private equity platform, while Atlanta-based Corpay will acquire a minority interest in the company.
TPG and Corpay will pay $10 per share for AvidXchange, representing a 22% premium over the company’s closing price of $8.20 on May 6, 2025, according to a media release.
Certain members of the AvidXchange senior management team have agreed to rollover a significant portion of their equity in support of the transaction, which was unanimously approved by the independent members of the AvidXchange board of directors.
Upon completion of the transaction, AvidXchange will become a private company with additional flexibility to continue investing in growth and delivering integrated payment solutions that enable greater efficiency, visibility, and control for customers, the media release says.
AvidXchange went public in 2021.
“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,” Michael Praeger, CEO of AvidXchange, said in a statement. “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.”
Founded in 2000, AvidXchange’s software-as-a-service-based, end-to-end software and payment platform digitizes and automates the AP workflows for more than 8,500 businesses, and it has made payments to more than 1.35 million supplier customers of its buyers over the past five years.
Founded in San Francisco in 1992, TPG has $246 billion of assets under management and investment and operational teams around the world.
“There is a very large opportunity for businesses to improve their accounts payable processes through automation and become more efficient, more secure, and more accurate,” John Flynn, a partner at TPG, said in a statement. “AvidXchange is addressing this need, providing a differentiated payment network and end-to-end tools that integrate seamlessly into workflows, enabling strong connectivity between businesses and their suppliers. We are thrilled to partner with Michael Praeger and the AvidXchange team, as well as [Corpay Chairman and CEO] Ron Clarke and the Corpay team, to support and accelerate the growth of the platform.”
“TPG’s technology team has focused on AP automation for several years, and we have long recognized AvidXchange as a distinct leader in this space,” added Tim Millikin, a partner at TPG. “Modern businesses require modern payment technology, and we see significant opportunity for AvidXchange as a private company to continue enhancing its solutions to improve visibility and unlock efficiencies across the payment process.”
Founded in 2000, Corpay is a global S&P 500 provider of commercial cards, such as business cards, fleet cards, and virtual cards, and AP automation solutions, such as invoice and payments automation and cross-border payments, to businesses worldwide.
“We’re delighted to partner with AvidXchange leadership and TPG on this transaction,” Clarke said in a statement. “AvidXchange’s leading suite of AP automation solutions has made them a trusted partner to over 8,500 middle market businesses and is highly complementary to our corporate payments business. We couldn’t be more excited about the company’s future prospects.”
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.
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