Exclusive: Enterprise payments agency AvidXchange preps for IPO, eyeing $7 billion valuation

By David French

(Reuters) – AvidXchange Inc has hired investment banking institutions like Goldman Sachs Group to direct preparations for an preliminary general public supplying which may possibly worth the business payments processor at much more than $7 billion, people today common with the matter said on Tuesday.

Backed by investors like Mastercard Inc and PayPal Holdings Inc co-founder Peter Thiel, AvidXchange delivers program that automates payments, invoicing and accounting for little and mid-sized businesses.

COVID-19 lockdown measures have compelled smaller providers to embrace digital methods for day to day, paper-large duties, a craze which has boosted organizations these types of as AvidXchange.

Trying to get to capitalize on that momentum, the Charlotte, North Carolina-based mostly business aims to list on the inventory market in the next quarter. As well as Goldman, JPMorgan Chase & Co, Lender of The usa Corp, and Barclays PLC have been retained as IPO arrangers, according to two of the sources.

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All those included in the offer think AvidXchange could be worthy of in between $5 billion and $7 billion in an IPO, and most likely as substantially as $10 billion given modern solid trader hunger for payments corporations, the resources explained.

This would be noticeably bigger than the $2 billion AvidXchange was valued at in its most recent non-public fundraising spherical in April, 2020.

The resources spoke on ailment of anonymity as the details is non-public. AvidXchange declined to comment. Spokespeople for the quartet of banking companies either declined to remark or did not straight away reply to comment requests.

Established in 2000, AvidXchange procedures all-around 12 million payments per year with a full benefit of $140 billion, according to its internet site.

Values of monetary know-how firms have boomed in the final 12 months, each for general public and non-public names. AvidXchange’s shown peers, Invoice.com Holdings Inc and Coupa Computer software Inc, have advanced a lot more than 300{f13b67734a7459ff15bce07f17c500e58f5449212eae0f7769c5b6fbcf4cc0c4} and 89{f13b67734a7459ff15bce07f17c500e58f5449212eae0f7769c5b6fbcf4cc0c4} respectively in excess of that interval.

Previously this month, Swedish payments agency Klarna announced a new funding spherical at practically triple its valuation from when it tapped personal investors in September.

(Reporting by David French in New York Editing by Alexandra Hudson)