TPG, Corpay to buy payments firm AvidXchange in $2.2 billion take-private deal

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(Reuters) -Global alternative asset manager TPG will partner with Corpay to buy payments solutions provider AvidXchange 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 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)