AvidXchange Holdings, Inc. (AVDX) stock is surging 18.41% in pre-market trading on Wednesday following the announcement of a $2.2 billion acquisition deal. Global alternative asset manager TPG, in partnership with business payments firm Corpay, has agreed to acquire AvidXchange in an all-cash transaction.

Under the terms of the agreement, AvidXchange stockholders will receive $10.00 per share in cash, representing a premium of approximately 22% to the company's closing price on Tuesday. TPG will acquire a majority interest in AvidXchange through its U.S. and European private equity platform, TPG Capital, while Corpay will take a minority stake with an investment of about $500 million for a 33% equity position.

The acquisition, expected to close in the fourth quarter of 2025, will take AvidXchange private. The deal has been unanimously approved by the independent board members of AvidXchange, and several members of the company's senior management team have agreed to roll over a significant portion of their equity to support the transaction. This strategic move is likely to strengthen AvidXchange's position in the payment solutions sector, leveraging TPG's expertise and Corpay's established presence in the corporate payments industry.