TPG, Corpay to buy AvidXchange for $2.2 billion (updated)

AvidXchange Holdings

06/05/2025 23:00

Adds details on Corpay investment and CEO comments in paragraphs 5-7

May 6 (Reuters) - Global alternative asset manager TPG TPG.O will partner with Corpay CPAY.N to buy payments solutions provider AvidXchange AVDX.O and take it private in an all-cash deal worth $2.2 billion, the companies said on Tuesday.

The deal, which helps the two payments firms scale up operations, sent AvidXchange's shares soaring about 20% in extended trading.

Under the agreement, TPG and Corpay have agreed to pay $10.00 per share, representing a premium of about 22% to AvidXchange's close on Tuesday.

After the deal's completion, expected in the fourth quarter, TPG will own the majority stake in AvidXchange and Corpay the minority one.

In a separate statement, Corpay said it will invest about $500 million to acquire 33% of AvidXchange.

Corpay has the option to buy the rest of the stake in AvidXchange in 2028, Chairman and CEO Ron Clarke said.

"We couldn't pass up the opportunity to participate in this transaction and invest in a large, complementary corporate payments business," said Corpay Chairman and CEO Ron Clarke.

Corpay's deal comes after British financial services provider Alpha Group International ALPH.L on Tuesday said it had rejected an all-cash proposal from the U.S.-based business payments firm.

AvidXchange is a payment solutions firm, leading in accounts payment, that offers payment network and end-to-end tools that integrate into work flows, enabling connectivity between businesses and their suppliers.

 (Reporting by Kritika Lamba and Jaiveer Shekhawat in Bengaluru; Editing by Leroy Leo)

 ((Kritika.Lamba@thomsonreuters.com;))