CHARLOTTE, N.C., June 8, 2017 /PRNewswire/ -- AvidXchange™, a
leading fintech provider of accounts payable and payment automation
for midsize companies, announced today its strategic partnership
with Mastercard to deliver accounts payable and payment automation
to small and midsize businesses. To support AvidXchange's continued
growth and ability to scale operations for strategic ventures, such
as the one with Mastercard, the company is also announcing
the signing of $300 million in
financing with contributions from Caisse de dépôt et placement du
Québec (CDPQ), Mastercard, Temasek, and Peter Thiel. The company's
long-term partner, Financial Technology Partners LP and FTP
Securities LLC ("FT Partners"), served as exclusive financial and
strategic advisor to AvidXchange in this transaction.
"We founded AvidXchange to revolutionize the way midsize
companies pay their bills. The strategic partnership with
Mastercard will help us to realize the vision that we've had to
transform an industry, and to reach the 350,000 businesses that are
currently operating in the middle market with antiquated
processes," commented Michael
Praeger, CEO and Co-Founder of AvidXchange. "The round of
funding that we closed will empower us to continue to make bold
business decisions to serve the midsize businesses, and scale our
operations as we maintain focus on delivering a superior customer
experience. We are thrilled with the group of investors that we
assembled. The diversity in this cohort of investors is a sign of
the growing interest in the fintech sector and acknowledgement that
companies, like AvidXchange, are the way forward for business,"
added Praeger.
AvidXchange has been a leader in payables automation for
businesses since 2000, and serves more than 5,500 customers in
North America. Mastercard and
AvidXchange forged this partnership to leverage AvidXchange's
expertise in AP and payment automation and Mastercard's proven
commercial payment solutions to further penetrate the middle
market, which has been much slower to adopt technologies to
automate manual invoice and payment processes than larger
enterprises. The Mastercard B2B Hub with AvidXchange will be
delivered through card issuers as an end-to-end automated solution
that meets all the payment needs of small and midsized companies.
AvidXchange will serve as the execution partner for Mastercard's
launch of The Mastercard B2B Hub in the
United States. Beginning later this year, The Mastercard B2B
Hub will be made available to companies through their bank or
commercial card issuer. AvidXchange will offer banks who choose not
to utilize their own card payment capabilities with The Mastercard
B2B Hub program options through its existing relationships with
Comdata and KeyBank.
"Midmarket and small businesses are growth engines of our
economy. The Mastercard B2B Hub is the latest way we are working to
meet the broader payment needs of this segment," said Colleen Taylor, executive vice president of new
payments business for Mastercard. "We see this solution as helping
organizations maximize every minute and every dollar that they
invest in their business. The comprehensive automated payment
experience we deliver will help improve supplier relationships and
accelerate the conversion of B2B payments from paper checks to
electronic payments."
The group that AvidXchange assembled for its $300 million round highlights the growing
diversity in investment interest for fintech. CDPQ is a long-term
institutional investor that manages funds primarily for public and
parapublic pension and insurance plans. It is one of North America's leading institutional fund
managers, and this transaction adds to CDPQ's private equity
investments in the financial technology sector. Mastercard is a
leader in electronic payments, and this investment will support the
partnership with AvidXchange. Temasek is an investment
company headquartered in Singapore, whose investment activities are
guided by its investment themes and the long-term trends they
represent.
About Caisse de dépôt et placement du Québec
Caisse de dépôt et placement du Québec (CDPQ) is a long-term
institutional investor that manages funds primarily for public and
parapublic pension and insurance plans. As at December
31, 2016, it held $270.7 billion
in net assets. As one of Canada's
leading institutional fund managers, CDPQ invests globally in major
financial markets, private equity, infrastructure and real estate.
With over $30 billion of assets under
management, CDPQ's private equity team has significant expertise
both as a direct investor in companies and as a partner in
investment funds. From LBOs to growth equity in businesses in all
sectors, CDPQ differentiates itself through its flexible and
collaborative approach, worldwide network, and long-term investment
horizon. For more information, visit cdpq.com, follow us on Twitter
@LaCDPQ or consult our Facebook or LinkedIn pages.
About Mastercard
Mastercard (NYSE: MA), www.mastercard.com, is a technology
company in the global payments industry. We operate the
world's fastest payments processing network, connecting consumers,
financial institutions, merchants, governments and businesses in
more than 210 countries and territories. Mastercard products
and solutions make everyday commerce activities – such as shopping,
traveling, running a business and managing finances – easier, more
secure and more efficient for everyone. Follow us on Twitter
@MastercardNews, join the discussion on the Beyond the Transaction
Blog and subscribe for the latest news on the Engagement
Bureau.
About Temasek
Incorporated in 1974, Temasek is an investment company
headquartered in Singapore.
Supported by 10 offices globally; including New York and San
Francisco in the U.S., London in Europe, Beijing in China, and Mumbai in India, Temasek owns a S$242 billion (US$180b) portfolio as at 31 March 2016, mainly in Singapore and Asia.
Temasek's portfolio covers a broad spectrum of industries:
telecommunications, media & technology; financial services;
transportation & industrials; consumer & real estate; life
sciences & agriculture; as well as energy & resources.
Its investment activities are guided by four investment themes
and the long-term trends they represent: Transforming Economies;
Growing Middle Income Populations; Deepening Comparative
Advantages; and Emerging Champions. Temasek's current and prior
investments in the U.S. include Airbnb, Ancestry.com, Dell
Technologies, Intapp, Internet Brands, Jasper, Univar, Verily Life
Sciences and Virtu Financial.
For more information, visit www.temasek.com.sg.
About AvidXchange™
AvidXchange™ revolutionizes the way companies pay their
bills. Serving more than 5,500 clients throughout
North America, AvidXchange is an
industry leader in automating invoice and payment processes for
midmarket companies spanning multiple industries including Real
Estate, Financial Services, Energy, and Construction.
AvidXchange has been recognized as one of the 50 fastest-growing
private companies in the Charlotte
area for six consecutive years, ranked among Deloitte's Fast 500
this past year, and recently was named of the top 100 technology
companies in North America by
Red Herring. In the midst of
record growth, AvidXchange has remained true to its most valued
competitive advantage—its people. AvidXchange has been
recognized as one of the Best Places to Work in Charlotte for seven consecutive years.
For more information, contact us at 800.560.9305 or
info@AvidXchange.com.
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SOURCE AvidXchange