From Yahoo Finance: 2025-05-07 08:20:00

AvidXchange Holdings, Inc. (NASDAQ:AVDX) is trading higher premarket after agreeing to be acquired by Corpay, Inc. (NYSE:CPAY) and TPG Inc. (NASDAQ:TPG). The deal values AvidXchange at $2.2 billion, a 22% increase over its previous closing stock price of $8.20 on May 6, 2025.

Corpay will invest $500 million for a 33% ownership stake in the privatized company. The transaction is expected to be completed in the fourth quarter of 2025, pending shareholder and regulatory approvals.

The acquisition is projected to impact Corpay’s earnings positively starting in 2026. Taking AvidXchange private will allow Corpay to implement changes and accelerate profit expansion. Corpay also has the option to acquire the remaining ownership of AvidXchange in 2028.

Corpay’s Chairman and CEO, Ron Clarke, highlighted AvidXchange’s strong customer base and revenue streams. TPG Partner John Flynn emphasized AvidXchange’s payment network and tools that facilitate connectivity between businesses and suppliers.

As of March 31, 2025, Corpay had cash and cash equivalents totaling $1.55 billion. Investors can access the stock through Fidelity Disruptive Finance ETF (NASDAQ:FDFF) and Managed Portfolio Series Tremblant Global ETF (NYSE:TOGA).

AVDX shares are up 18.41% at $9.71 premarket.

Read more: AvidXchange To Go Private For 22% Premium In M&A Deal