AvidXchange Soars 18.9% on $2.2B Acquisition Deal

On May 7, 2025, AvidXchange's stock surged by 18.9% in pre-market trading, marking a significant rise in its share price.

AvidXchange, a leading provider of accounts payable automation software and payment solutions, has agreed to be acquired by tpg and corpay in a cash transaction valued at $2.2 billion. TPG will acquire a majority stake in the company, while Corpay will invest approximately $500 million for a 33% equity stake. The transaction is expected to close in the fourth quarter of the year.

The acquisition is part of a broader strategy by TPG and Corpay to expand their presence in the fintech sector. AvidXchange's advanced AP automation software and payment solutions are expected to complement TPG and Corpay's existing offerings, creating a more comprehensive suite of financial services for their clients.

This deal highlights the growing interest in the fintech industry, as investors seek to capitalize on the increasing demand for digital payment solutions and automation technologies. The acquisition is also a testament to AvidXchange's strong market position and innovative product offerings, which have made it a attractive target for acquisition.

Ask Aime: Why did AvidXchange's stock soar after the acquisition?