AvidXchange (Nasdaq: AVDX), a provider of accounts payable (AP) automation software and payment solutions for middle market businesses, has been sold for $2.2 billion. The purchaser was a group led by TPG (NASDAQ: TPG), an alternative asset manager with around $250 billion in AUM. Corpay (NYSE: CPAY), a global firm operating in the corporate payments sector was a strategic minority investor.
The purchase price at $10 a share provided a significant premium over the market valuation. The deal was handled by specialist Fintech investment bank FT Partners. FT Partners noted its longstanding relationship with the firm pointing to its 100X valuation increase during this time. The deal is expected to close at some point in Q4.
FT Partners founder Steve McLaughlin said that he began investing in AvidXchange at a $20 million equity value and continues to hold his shares.
AvidXchange reported earnings today, showing a 2.2% revenue growth during Q1 2025. Non-GAAP net income was $10.4 million, compared with $11.3 million in the first quarter of 2024.
TPG’s earnings were simultaneously announced today, pointing to $57 billion of dry powder across the firm.
AvidXchange on its $2.2 billion cash sale to a consortium led by TPG (NASDAQ: TPG), a leading global alternative asset manager with nearly $250 billion in assets under management, and a strategic minority investor
AvidXchange SaaS-based software and payment platform digitizes and automates the AP workflows for more than 8,500 businesses, and it has made payments to more than 1,350,000 supplier customers over the past five years.