TPG Inc. (TPG) and Corpay, Inc. (CPAY) entered a merger agreement on May 6, 2025, to acquire payments solutions provider AvidXchange Holdings, Inc. (AVDX) in an all-cash deal valued at $2.2 billion.
Under the terms of the agreement, TPG and Corpay will acquire AvidXchange for $10 per share in a cash transaction, representing a 21.95% premium from the stock’s last close.
AvidXchange is a North American provider of SaaS-based accounts payable automation and payment solutions, helping over 8,500 middle-market businesses streamline invoice processing and make payments to more than 1.35 million suppliers.
TPG is a global alternative asset management firm with $246 billion in assets under management, investing across private equity, credit, real estate, and other strategies through a network of investment and advisory teams worldwide.
Corpay is a payments company that provides commercial cards and accounts payable automation solutions, helping businesses manage expenses, streamline payments, and reduce fraud across multiple sectors worldwide.
In March, Bloomberg reported that AvidXchange was weighing a sale after getting takeover interest. The report did not identify any prospective buyers at the time. The stock was trading at $6.89 before the news.
Upon completion of the deal, expected in the fourth quarter, TPG will hold a majority stake in AvidXchange, with Corpay retaining a minority interest.
Corpay also said it will invest about $500 million to acquire a 33% stake in AvidXchange. “We have the option to buy the rest of the company in 2028,” said Corpay CEO Ron Clarke. “We couldn’t pass up the opportunity to participate in this transaction and invest in a large, complementary corporate payments business.” Corpay expects the transaction to be accretive to its earnings in 2026.
Financial Technology Partners and Barclays are serving as financial advisors to AvidXchange, with Latham & Watkins acting as its legal counsel. TPG is being advised by J.P. Morgan Securities, Moelis & Co., and RBC Capital Markets on the financial side, while Davis Polk & Wardwell and Schulte Roth & Zabel are providing legal counsel. Corpay is receiving financial advice from Goldman Sachs and legal counsel from Eversheds Sutherland.
The acquisition implies that TPG and Corpay are paying 58.46 times the EBITDA of AvidXchange.
For more detailed information about this merger and acquisition (M&A) transaction, you can visit the Deal Metrics page:
Deal Metrics for the acquisition of AvidXchange Holdings, Inc. (AVDX) by TPG (TPG) and Corpay (CPAY)
The Deal Metrics page provides the following for each merger or acquisition:
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Editor’s Note: Baranjot Kaur contributed to this article