Corpay, an Atlanta-based company funds firm, has introduced that it has entered right into a definitive settlement to amass a minority stake in AvidXchange as a part of a transaction to take AvidXchange non-public.
The deal is being carried out in partnership with international funding agency TPG, and values AvidXchange at roughly US$2.2 billion.
Below the phrases, shareholders will obtain US$10.00 per share in money.
Corpay will make investments round US$500 million to acquire a 33 % fairness curiosity in AvidXchange.
The transaction is anticipated to shut within the fourth quarter of 2025, pending shareholder and regulatory approval in addition to customary closing situations.
AvidXchange gives accounts payable automation options primarily to decrease center market companies, specializing in sectors comparable to actual property, owners associations, monetary providers and media.
Ron Clarke, Chairman and Chief Govt Officer of Corpay, mentioned,
“We’re delighted to companion with AvidXchange management and TPG on this transaction. We couldn’t move up the chance to take part on this transaction and spend money on a big, complementary company funds enterprise.”
Commenting on the rationale for the funding, Clarke added,
“We’re extremely impressed with AvidXchange’s belongings and capabilities. AvidXchange has over 8,500 extremely happy prospects in complementary verticals. It has a big service provider cost community with a mixture of digital card and ACH plus acceptance. Moreover, we actually like AvidXchange’s enterprise mannequin: numerous income streams from funds and software program, excessive retention charges, and little or no working capital and credit score publicity.”
He additionally famous that Corpay expects the transaction to contribute positively to its earnings in 2026, and that the non-public possession construction will present AvidXchange with higher flexibility to pursue profitability.
Corpay may even retain an choice to amass the remaining curiosity within the firm in 2028.
Goldman Sachs & Co. LLC served because the unique monetary advisor to Corpay, with authorized counsel offered by Eversheds Sutherland.
Featured picture credit score: edited from freepik
