Business payments automation firm AvidXchange is going private through a $2.2 billion deal that sees asset firm TPG take majority ownership with Corpay picking up a minority stake.
TPG and corporate payments player Corpay will pay $10 per share in cash, a 22% premium on AvidXchange's closing price on 6 May and a 45% premium over the closing price on March 12, the day before media reports sur about a possible sale surfaced.
TPG will take a 67% stake in the business, with Corpay paying $500 million for 33%.
Founded in 2000, AvidXchange offers a single platform that eliminates the paper invoice and cheque and offers multiple e-payment options for more than 8000 companies.
The firm went public in 2021 but called in advisers to explore a sale this year as its share price tumbled.
“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,” says Michael Praeger, CEO, AvidXchange.
Last month, Corpay received a cash injection when Mastercard agreed to pay $300 million for a three per cent stake in its cross-border payments business.
It's not all been plain sailing for Corpay in the M&A space, after an all-cash bid for London-based financial services provider Alpha Group International was rejected on Tuesday.
Alpha said the board "carefully considered" the proposal with its financial advisers and unanimously rejected it.