AvidXchange Stock Soars After $2.2 Billion Acquisition Deal Announced
Investing.com – Shares of AvidXchange Holdings, Inc. (NASDAQ: AVDX) surged as much as 18% in trading Tuesday after the company announced it had entered into a definitive agreement to be acquired by TPG and Corpay in a transaction valued at up to $2.2 billion.
According to the official announcement, the deal will value AvidXchange at $10.00 per share, representing a roughly 22% premium to its May 6, 2025 closing price and a 45% upside to its March 12, 2025 closing price. This represents an attractive premium for current shareholders.
The deal will take AvidXchange, a leading provider of payments automation and accounts payable (AP) software, private. According to management, the privatization will give AvidXchange greater flexibility to invest in technology innovation, expand its market reach, and improve efficiencies in integrated payments solutions.
Michael Praeger, CEO and co-founder of AvidXchange, said:
This deal not only creates immediate and significant shareholder value, but also enables us to accelerate our long-term growth trajectory with the support of strategic partners like TPG and Corpay.
John Flynn and Tim Millikin, representatives of TPG, affirmed that AvidXchange holds a unique leadership position in the AP automation market, an area that is increasingly being targeted by global businesses to optimize financial processes and reduce operating costs.
In a similar vein, Corpay Chairman and CEO Ron Clarke highlighted the potential for AvidXchange to expand its ability to serve enterprise clients while creating more comprehensive payment solutions.
The deal has received unanimous approval from the independent members of AvidXchange’s Board of Directors and is currently subject to shareholder and regulatory approval. The transaction is free of financial obligations and is expected to close in the fourth quarter of 2025. Several senior executives have also committed to converting a majority of their shares to support the transaction.
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