TPG and Corpay have agreed to acquire AvidXchange in a $2.2bn take-private transaction, reinforcing private equity’s continued push into the fintech and SaaS infrastructure space.

The all-cash deal values AvidXchange at $10.00 per share, representing a 22% premium over its closing price on 6 May. TPG, through its flagship TPG Capital vehicle, will acquire a majority interest, while Corpay will contribute approximately $500m for a 33% equity stake.

The agreement has received approval from AvidXchange’s board of directors and is expected to close in the fourth quarter of 2025, pending shareholder and regulatory approvals. Select senior management from AvidXchange will roll over a significant portion of their equity in support of the deal.

AvidXchange offers SaaS-based accounts payable automation and payment solutions tailored to middle market businesses. The investment will support the company’s platform scaling efforts and accelerate product development under long-term private ownership.

“With TPG and Corpay, we will have the resources and long-term focus to scale our platform and provide more innovative solutions,” said Michael Praeger, CEO of AvidXchange.

Corpay CEO Ron Clarke added, “We expect the transaction to be accretive to Corpay’s earnings in 2026. The structure gives us flexibility to transform the business and drive profit growth. We also retain the option to acquire full ownership in 2028.”

The announcement follows Mastercard’s $300m investment in Corpay’s cross-border business, valuing the unit at $10.7bn.

Advisors to AvidXchange include Financial Technology Partners and Barclays, with legal counsel from Latham & Watkins. TPG received financial advice from J.P. Morgan Securities, Moelis & Company, and RBC Capital Markets, with Davis Polk & Wardwell and Schulte Roth & Zabel providing legal support. Goldman Sachs and Eversheds Sutherland advised Corpay.

Source: Yahoo Finance