Month: January 2020

AvidXchange raises $260 million to support continued growth

B2B payments & AP automaton leader kicks off 20th year with new capital

CHARLOTTE, N.C. (Jan. 16, 2020) – AvidXchange, the leading provider of accounts payable (AP) and payment automation solutions for the middle market, today announced it has raised $260 million in equity capital as part of the company’s latest financing round. With contributions from TPG Sixth Street Partners and other leading investors, this brings total funding to more than $800 million over the company’s 20-year history. The new capital will fuel AvidXchange’s continued growth and innovation, allowing the company to invest in its solutions for both buyers and suppliers while reaching more customers in the middle market.

“More than 60 percent of U.S. businesses still pay bills with paper checks, accounting for more than $2.7 trillion in administrative costs annually,” said Michael Praeger, CEO and Co-Founder of AvidXchange. “We’re shaping the future of the B2B payments industry by fundamentally changing the way businesses pay their bills, providing a single platform for AP and payments with the largest payments network for the middle market.”

The funding comes on the heels of a transformational 2019 for the company, as AvidXchange took several steps to propel growth and drive the business toward its next phase. In October, the business launched AvidPay and AvidInvoice for long-term healthcare and social services and in July, the acquisition of BankTEL Systems added nearly 2,000 bank customers to its financial services vertical. The company also hired 175 new teammates in 2019, bringing its total number of employees to more than 1,400 across seven offices, with plans announced for a headquarters expansion that will double its footprint and accommodate an additional 1,200 teammates.

TPG Sixth Street Partners has a long-tenured relationship with AvidXchange and has been an investor since 2015.

“AvidXchange is poised to win with a complete offering of invoice automation, payment automation and supply chain finance all in one platform,” said Bo Stanley, Partner and Co-Head of Capital Solutions at TPG Sixth Street Partners. “Their comprehensive solutions coupled with the power of the AvidPay Network gives them all the right tools to lead the market, and we are proud to be their long-term partner.”

Financial Technology Partners LP and FTP Securities LLC (“FT Partners”) served as the exclusive financial and strategic advisor to AvidXchange in this transaction.

About AvidXchange™

AvidXchange is the industry leader in automating invoice and payment processes for mid-market businesses. Founded in the year 2000, AvidXchange processes 9.5 million payments annually across its network of more than 500,000 suppliers, transforming the way 5,500 customers in North America pay their bills. AvidXchange is distinguished as a fintech unicorn and one of the fastest growing technology companies in the U.S. with 1,400 employees in seven office locations. For more information, visit www.avidxchange.com.

About TPG Sixth Street Partners

TPG Sixth Street Partners is a global finance and investment business with over $33 billion in assets under management and TSSP Capital Solutions (“Capital Solutions”) is its dedicated growth investing platform. Capital Solutions makes customized, non-control private investments in growth-oriented companies. The Capital Solutions team partners with companies and management teams to provide bespoke, accretive financing solutions that often fall between traditional growth equity and commercial debt. TPG Sixth Street Partners has invested over $3 billion in more than 35 growth-oriented companies in its Capital Solutions strategy since inception. Select current and past representative Capital Solutions investments include AirTrunk, AvidXchange, Gainsight, Kyriba, Lucidworks, Paycor, PayScale, PaySimple and Spotify. For more information, visit www.tssp.com/tcs.

Medsphere to Grow Interoperable Healthcare IT Platform with $40 Million Preferred Equity Investment from TPG Sixth Street Partners

Carlsbad, CA –January 14, 2020 Medsphere Systems Corporation, the leading provider of efficient and interoperable healthcare information technology (IT) software solutions and services, today announced new $40 million funding to support organic growth and pursue opportunistic strategic acquisitions through a preferred equity investment by TPG Sixth Street Partners.

“We are pleased to add a new partner to our software solutions-driven campaign for quality, affordable healthcare,” said Medsphere President and CEO Irv Lichtenwald. “Our technology and business model allow all providers to address core needs and we are energized by the support of institutions like TPG Sixth Street Partners.”

“Medsphere represents a compelling opportunity to support a differentiated healthcare technology platform,” said Michael McGinn, Partner and Co-Head of TPG Sixth Street Partners’ Capital Solutions business. “Medsphere’s portfolio of highly regarded, complementary products allow it to reach a wide range of inpatient and ambulatory providers, and we are excited to partner with them as they enter their next phase of growth.”

Lee Mooney, Principal at TPG Sixth Street Partners will join Medsphere’s Board of Directors as part of the capital raise.
Over the past four years, Medsphere has grown subscription revenue by over 400 percent using a combination of organic growth and accretive acquisitions, achieving a compounded annual growth rate of over 50 percent. Medsphere’s dedication to highly responsive customer service and support has driven growth by bringing new clients to the platform and increasing delivery of incremental products to its existing customer base. Medsphere’s suite of solutions is available to all inpatient and ambulatory facilities, including behavioral health hospitals, specialty clinics and multi-facility systems, regardless of size and budget.

With this investment, TPG Sixth Street Partners joins Morgan Stanley Investment Capital, Azure Capital, EPIC Ventures, and NextEquity investing in support of Medsphere’s vision and continued growth.

About Medsphere

Founded in 2002 and based in Carlsbad, Calif., Medsphere Systems Corporation is an organization of committed clinical and technology professionals working to positively impact patient care by delivering award-winning healthcare IT solutions for providers of every size and budget. Medsphere’s inpatient portfolio includes CareVue, an integrated EHR system that incorporates clinical, financial, and patient accounting solutions, and RCM Cloud, a complete end-to-end revenue cycle management solution.

Medsphere’s ChartLogic division offers a complete ambulatory suite including EHR, Practice Management, Revenue Cycle Management, and Patient Portal. Using a vendor-independent approach to helping hospitals solve critical challenges, the Phoenix Health Systems division provides a host of healthcare IT services, including systems implementation, project management, remote service desk, end-user device management, application management and IT leadership. Medsphere’s Government Services Division also applies legacy EHR expertise to development and testing projects for both the Department of Veterans Affairs and Indian Health Service.

Learn more about Medsphere at www.medsphere.com.

About TPG Sixth Street Partners

TPG Sixth Street Partners is a global finance and investment business with over $33 billion in assets under management and TSSP Capital Solutions (“Capital Solutions”) is its dedicated growth investing platform. Capital Solutions makes customized, non-control private investments in growth-oriented companies. The Capital Solutions team partners with companies and management teams to provide bespoke, accretive financing solutions that often fall between traditional growth equity and commercial debt. TPG Sixth Street Partners has invested over $3 billion in more than 35 growth-oriented companies in its Capital Solutions strategy since inception. Select current and past representative Capital Solutions investments include AirTrunk, AvidXchange, Gainsight, Kyriba, Lucidworks, Paycor, PayScale, PaySimple and Spotify. For more information, visit www.tssp.com/tcs.

 

AvePoint Announces $200 Million Equity Investment Led by TPG Sixth Street Partners

Jersey City, New Jersey — January 8, 2020 —AvePoint, the leading provider of data governance,  protection and migration solutions for Office 365 and SharePoint, today announced approximately $200 million in commitments from new minority equity investors to fuel its global growth and expansion, as well as partially recapitalize long-term shareholders. The capital raise was led by a substantial Series C Preferred Equity investment from TPG Sixth Street Partners with additional participation from both new and existing investors, including Goldman Sachs.

AvePoint continues to experience outstanding growth driven by the rise in adoption of Office 365 and other cloud office solutions. AvePoint’s most popular solution, Cloud Governance, helps organizations better govern and secure Microsoft Teams, the fastest growing business application in Microsoft’s history. The company is also the only scaled vendor that provides Microsoft Teams backup solutions as well as Slack to Teams migration solutions and services.

Today, more than 7 million cloud users and 16,000 large enterprises across all seven continents trust AvePoint software and services for their data management, protection and migration, needs.

AvePoint plans to use its latest round of funding to accelerate its growth and investment into its channel offerings that provide managed service providers (MSPs) the tools to better migrate, manage and protect the Office 365 environments of their small and medium business clients. AvePoint aims to add more than 40,000 customers through the channel in the next two years.

MSPs can currently purchase AvePoint solutions from a wide variety of distribution partners including Synnex, TechData, and Intcomex. In July 2019, global distributor Ingram Micro announced AvePoint as its exclusive migration and backup solution provider as part of its Modern Workplace Accelerate program.

“A huge driver of our growth has been our own digital transformation into a majority SaaS solution company,” said Tianyi Jiang, co-founder and co-CEO, AvePoint. “We have invested in our cloud platform to ensure that we have the scale, pace of innovation, API extensibility and security to meet our customer’s demands. This strategic focus has played a large role in delivering four consecutive quarters of record revenue growth in 2019.”

The senior management team, including co-founders and co-CEOs Kai Gong and Tianyi Jiang, will continue to lead the company.  Michael McGinn, Partner and Co-Head of Capital Solutions at TPG Sixth Street Partners, will join AvePoint’s board of directors.

“Through its investment in innovation and reputation for reliability, AvePoint has positioned itself to take advantage of the tremendous opportunities presented by the rapid and widespread adoption of cloud office solutions,” said Mr. McGinn. “We look forward to partnering with their senior leadership as they continue their focus on meeting their customers’ needs and driving the company towards its next phase of growth.”

AvePoint employs more than 1,500 people with offices in the United States, United Kingdom, Germany, France, Singapore, Australia, Netherlands, China, Japan, Philippines and more.

About AvePoint

AvePoint accelerates your digital transformation success. Over 16,000 companies and 7 million SharePoint and Office 365 users worldwide trust AvePoint software and services for their data  management, protection, and migration needs in the cloud, on-premises and hybrid environments.

A four-time Microsoft Partner of the Year, AvePoint is a Microsoft Global ISV Partner and has been named to the Inc. 500|5000 six times and the Deloitte Technology Fast 500™ five times. Founded in 2001, AvePoint is privately held and headquartered in Jersey City, NJ.

About TPG Sixth Street Partners

TPG Sixth Street Partners (“Sixth Street”) is a global finance and investment business with over $33 billion in assets under management and TSSP Capital Solutions (“Capital Solutions”) is its dedicated growth investing platform.  Capital Solutions makes customized, non-control private investments in growth-oriented companies. The team partners with companies and management teams to provide bespoke, accretive financing solutions that often fall between traditional growth equity and commercial debt. Sixth Street has invested over $3 billion in more than 35 growth-oriented companies in its Capital Solutions strategy since inception. Select current and past representative Capital Solutions investments include AirTrunk, AvidXchange, Gainsight, Kyriba, Lucidworks, Paycor, PayScale, PaySimple and Spotify. For more information, visit www.tssp.com/tcs.

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