AvidXchange Considers Sale After Takeover Interest
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
AvidXchange, a company that provides bill payment solutions, is looking at a possible sale after receiving interest from buyers.
The company, based in Charlotte, North Carolina, said it is working with Financial Technology Partners to review its options. Some private equity firms are among those interested. However, no final choice has been reached, and AvidXchange could decide not to sell.
AvidXchange said its stock has gone through many ups and downs this year. The company’s shares dropped 36% before going up again. On Thursday, the stock rose 14% to $7.84 in New York trading. This increased the company’s value to around $1.6 billion. However, this is much lower than its previous years initial public offering (IPO) price of $25 per share.
AvidXchange’s Recent Financial Growth Shows Strength
AvidXchange shared its latest financial results last month. The firm said it saw higher revenue in the fourth quarter and throughout the year. Total revenue increased by 10.9% compared to the previous year, reaching $115.4 million in the last quarter. The company also showed better profitability, reporting a net income of $4.7 million, compared to a net loss of $4.5 million during the same period last year.
AvidXchange has also worked on lowering its debt and buying back some of its stock. The company said it repurchased $50 million in common stock. By the end of the year, its cash and marketable securities totaled $389.3 million, while long-term debt was reduced to $9.1 million. The company also improved its gross margin to 74.9% by focusing on operational efficiency.
AvidXchange Remains Positive About Future Growth
Regardless of the economic hardships AvidXchange had remained positive about what lies ahead. The company is putting effort on partnership and launching new products like pay 2.0 and payment accelerator 2.0, the firm believes this idea will improve its growth in the future. The firm said it wants to improve its margin despite the decline of revenue as a result of economic problems.
AvidXchange is still considering its next move. Although the firm is communicating with potential buyers, there’s no promise that a deal will actually take place. Neither AvidXchange nor Financial Technology Partners are saying anything about it right now.
This sale shows some possible challenges that firms in the financial tech space are dealing with. The market is not staying the same, and these businesses have to figure out how to increase while dealing with economy uncertainties. AvidXchange said it is excited about its financial growth, which puts the firm in a good spot, but the company is still looking at all the available options.
