AvidXchange Sold for $2.2 Billion, Returns to Private Ownership

In a major market shift, TPG and Corpay struck a $2.2 billion deal to acquire Charlotte's payment software firm AvidXchange. The purchase will take the company off the public market, reversing its 2021 listing.

The split ownership tilts toward San Francisco-based TPG, with Atlanta's Corpay taking a smaller stake. Investors will receive a 22% premium over the last trading price, marking a 45% jump from March 12 valuations.

"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," said Michael Praeger to the Charlotte Observer.

The stock closed at $8.20 Tuesday. After-hours trading sent shares soaring to $10, still far below its initial public offering price of $25 in October 2021.

From its humble start in a Charlotte coffee shop 25 years ago, the tech firm now powers payments for 8,500 businesses. Their network has processed transactions for more than 1.3 million vendors since 2019.

Questions linger about the fate of 1,600 workers as the new owners stay quiet about plans for the Charlotte office.

The company's early backers included tech titan Peter Thiel of PayPal and banking veteran Hugh McColl, who saw its potential before the public listing.

TPG brings substantial financial power as a $246 billion investment giant with three decades of market experience.

This merger combines two payment tech specialists. Since 2000, Corpay has provided corporate payment cards and bill management solutions worldwide.

The transaction awaits approval from shareholders and regulatory bodies, with completion expected later this year.