Corporate Payments Firm Corpay and Global Asset Management firm TPG are a deal to acquire accounts Payable (AP) AutomatiseringsoftWarepovider Avidxchange.
Financial technology and Barclays partners served Avidxchange as financial advisers about this transaction, according to a press release on Tuesday (May 6) of Avidxchange.
“TPG and Corpay will acquire Avidxchange for $ 10.00 per share in a cash transaction that Avidxchange appreciates $ 2.2 billion,” said the press release. “TPG will acquire a majority interest in Avidxchange via TPG Capital, the American and European private equity platform of the company. Corpay will acquire a minority interest in the company.”
The price of $ 2.2 billion marks a premium of 22% above the final race of Avidxchange of $ 8.20 from Tuesday, according to the release. It also represents a premium of 45% compared to the closing price of $ 6.89 on 12 March, the day before the transaction about the transaction was discussed, were reported by Media.
Avidxchange becomes a private company once the deal is completed, and will have more flexibility to invest in growth and integrated payment solutions for its customers, according to the release.
“In the past 25 years, Avidxchange has established itself as a leader in AP automation and payment software by building a differentiated platform, prepared for growth,” said Michael Praeger, CEO of Avidxchange. “With TPG and Corpay we will have the resources and the long -term focus to scale our platform and offer more innovative solutions that help our customers throughout the country to transform their affordable accounts.”
Ron Clarke, the CEO and chairman of Corpay, said he was working with TPG and Avidxchange.
“The leading series of AP AP automation solutions from Avidxchange have made them a trusted partner for more than 8,500 Middle market companies and is very additional to our business payment activities. We can no longer be enthusiastic about the future perspectives of the company.”
Avidxchange was considering a sale for the first time in March in the midst of ‘turbulent market conditions’, Pymnts reported at the time.
“The ongoing discussions are because the Avidxchange shares have confronted for considerable challenges, this year 36% fall before he experiences a recent increase,” wrote Pymnts. “On Thursday, the shares of the company rose by 14% to close at $ 7.84 on the market in New York, so that the company is valued at around $ 1.6 billion. This marks a substantial decrease in the initial public offer price of $ 25 per share in 2021.” “
