Charlotte fintech AvidXchange sold for $2.2B to a pair of out-of-state companies
AvidXchange, a Charlotte-based payment software automation company that was founded in a local coffee shop 25 years ago, was sold Tuesday for $2.2 billion.
A pair of out-of-state companies, TPG and Corpay, are the buyers of AvidXchange, one of Charlotte’s home-grown fintech success stories.
TPG, a San Francisco-based global asset management firm will have a majority of stake in AvidXchange, while Atlanta-based Corpay, a corporate payments company, will acquire a minority interest, the trio of companies said in a news release.
The deal is expected to close by the end of the year.
AvidXchange will not become part of TPG, which is investing in the business. Charlotte will continue to be the headquarters for AvidXchange, and it is not changing leadership roles.
After the transaction, AvidXchange will become a private company. That will allow it to have flexibility to continue investing in growth and delivering integrated payment solutions for greater efficiency, visibility and control for customers, the companies said.
AvidXchange now has more than 1,600 employees, according to its website.
When AvidXchange went public in October 2021, it had an initial offering price of $25. It also raised about $620 million in net proceeds in the offering.
On Tuesday, the company ended the trading day on NASDAQ at $8.20, down slightly from the day before, but shot up to close to $10 in after-market trading.
The purchase price represents a 22% premium over AvidXchange’s Tuesday closing price and a 45% premium over the $6.89 closing price as of March 12, the last trading day before media reports of a potential deal involving the company surfaced.
AvidXchange has established itself as a leader in accounts payable automation and payment software by building a platform primed for growth, stated Michael Praeger, CEO of AvidXchange and its co-founder.
“With TPG and Corpay, we will have the resources and long-term focus to scale our platform and provide more innovative solutions that help our customers across the country transform their accounts payable processes,” Praeger said.
About AvidXchange
AvidXchange, an accounts payable automation software and payment solutions company, works with more than 8,500 businesses and has made payments to more than 1.3 million supplier customers in the past five years.
Before its 2021 IPO, AvidXchange had reached unicorn status — meaning it had evolved into one of the rare private companies valued at more than $1 billion. And it also produced of the largest initial public offerings that Charlotte had seen in a number of years.
Its rapid growth leading up to the IPO could be traced to a combination of acquisitions and private funding. PayPal founder Peter Thiel and former Bank of America CEO Hugh McColl were among its investors.
At the time of the IPO, AvidXchange had more than 1,000 workers at its Charlotte headquarters.
TPG is an alternative asset management firm with $246 billion of assets under management and investment. It started in 1992.
Founded in 2000, Corpay is a global provider of commercial cards and accounts payable solutions to businesses worldwide.
Observer business editor Adam Bell contributed to this story
This story was originally published May 6, 2025 at 7:53 PM.
