B2B leader fuels disruption of traditional accounts payable industry and e-payment adoption
CHARLOTTE, N.C., April 23, 2020 /PRNewswire/ — AvidXchange, the leading provider of accounts payable (AP) and payment automation solutions for the middle market, today announced it has raised an additional $128 million in equity capital. This latest financing effort was oversubscribed with a total of more than $388 million raised and includes AvidXchange’s previously announced closing of $260 million in equity financing earlier this year. Contributing investors represent a diverse cohort of the foremost capital management firms, including Lone Pine Capital, Schonfeld Strategic Advisors, Pivot Investment Partners, Mastercard, Sixth Street Partners and Neuberger Berman on behalf of clients.
AvidXchange will use the new capital to support strategic growth initiatives and continued innovation, helping both buyers and suppliers automate their AP and payments processes. The company’s rapid growth has been fueled by the adoption of its leading AP automation solution, a single SaaS based platform that allows businesses to gain efficiency and visibility into payments by eliminating the paper invoice and paper check. The solution also offers multiple e-payment options through the AvidPay Network of more than 600,000 suppliers, the largest payments network for the middle market.
“With only 40 percent of U.S. businesses automating their accounts payable processes, we continue to solve a real problem for companies that still rely on paper invoices and checks, fundamentally changing the way they pay their bills” said Michael Praeger, Co-Founder and Chief Executive Officer at AvidXchange. “This has become even more evident as we see businesses implementing continuity plans and shifting to work from home models, making automation essential to support mission critical processes and keep operations running.”
AvidXchange solutions manage the full invoice to payment process so businesses can receive invoices and pay bills at any time, from any location. With a dedicated supplier services team, AvidXchange also removes the burden of manual payment tasks from internal AP functions, taking on the responsibility of payment fulfillment and maintaining relationships with suppliers so customers can focus on more strategic initiatives.
This marks AvidXchange’s first investments from Lone Pine Capital, Neuberger Berman and Schonfeld Strategic Advisors, while Pivot Investment Partners, Sixth Street Partners and Mastercard have long-tenured relationships as investors with the company.
“We recognized the impact that AvidXchange could have on the B2B payments market prior to our initial investment in 2016 and are doubling down on our partnership as the adoption of automation technology continues to accelerate,” said Dinkar Jetley, Co-Founder and Partner, Pivot Investment Partners.
“AP automation is one of the most exciting spaces within B2B payments given the potential cost savings and increased efficiency for buyers and suppliers,” said Charles Kantor, Senior Portfolio Manager, Neuberger Berman. “We see AvidXchange as perhaps the strongest emerging platform in this space and are excited to partner with the team on their journey to further drive long term value creation.”
“AvidXchange has experienced tremendous growth due to the strength of its supplier network and continued expansion into new verticals,” said David Craver, Portfolio Manager and Managing Director, Lone Pine Capital. “We look forward to our partnership, as both buyer and supplier customers see the value AvidXchange brings to their businesses in leveraging the preeminent payment network for the middle market.”
Financial Technology Partners LP and FTP Securities LLC (“FT Partners”) served as the exclusive financial and strategic advisor to AvidXchange in this transaction.
AvidXchange is the industry leader in automating invoice and payment processes for mid-market businesses. Founded in the year 2000, AvidXchange processes over $140 billion transactions annually across its network of more than 600,000 suppliers, transforming the way 6,000 customers in North America pay their bills. AvidXchange is distinguished as a global fintech unicorn and one of the fastest growing technology companies in the U.S. with 1,500 employees supporting customers across seven office locations. For more information, visit www.AvidXchange.com.
Sydney, 08 April 2020
Macquarie Infrastructure and Real Assets (MIRA) and AirTrunk today announced that financial close has been reached on the acquisition of an 88 per cent stake in AirTrunk by a consortium led by Macquarie Asia Infrastructure Fund 2 (MAIF2), a MIRA-managed infrastructure fund. This investment values AirTrunk at more than $A3 billion and will accelerate its ambitious expansion across the Asia-Pacific (APAC).
AirTrunk is a best-in-class hyperscale data centre platform for large cloud, content and enterprise customers across APAC. Since the 2017 launch of its first hyperscale data centre in Western Sydney, AirTrunk has rapidly grown into a leading regional platform with facilities in Sydney (Sydney West and Sydney North), Melbourne, Singapore and Hong Kong, and a well-developed expansion plan in other markets. AirTrunk’s five data centres, once fully developed, will be able to deliver a combined capacity of more than 450 megawatts.
AirTrunk is building scalable and sustainable infrastructure in key APAC markets to enable the growth of cloud. Rapid population growth, digital adoption and the shift to the cloud is driving accelerated demand by cloud and content providers for hyperscale data centre solutions as offered by AirTrunk.
MIRA is one of the world’s leading alternative asset managers, and its portfolio is relied upon by more than 100 million people each day. MIRA has extensive experience in developing digital infrastructure assets and assisting management to operate them, with investments in data centres, fibre assets and telecommunication tower businesses across Europe, North America, and APAC.
The consortium, led by MAIF2 and including other MIRA-managed partners, acquired its stake in the business from Goldman Sachs, Sixth Street Partners (formerly TSSP) and founder, Robin Khuda. Mr Khuda will continue to hold a material stake in the business and will remain in his role as CEO under a long-term arrangement, supported by the existing executive management team.
Frank Kwok, Head of MIRA Asia-Pacific said: “The global data centre industry has grown significantly in recent years, driven by an exponential increase in data consumption, increasing cloud applications and the shift from internal IT infrastructure to outsourced resources. In the Asia-Pacific, this thematic is amplified by the region’s emerging economies and growing populations, leading to increasing data usage and a greater need for in-country computing workloads and storage.
“Our investors are attracted to hyperscale data centre providers such as AirTrunk because they have attributes such as long-term revenue streams and demand resilience throughout market cycles.
“We are impressed by the quality of AirTrunk’s digital infrastructure platform, its growing footprint throughout key Asia-Pacific markets, and its focus on supporting clients such as major cloud providers. This is a business with an impressive track record of execution for its customers, delivering capacity on time and on budget.”
Mr Khuda said: “AirTrunk has established itself as the dominant player in the APAC hyperscale market, rapidly growing our footprint in a disciplined way and securing a number of long-term customer commitments. The investment announced today will enable AirTrunk to continue to deliver secure, reliable and scalable infrastructure for our customers in existing and new markets.
“We look forward to working with MIRA’s expert team to usher in a new and exciting era for AirTrunk, building on the strong foundation we’ve established over the past three years. Their investment will enable us to roll out our rapidly expanding hyperscale platform across the region. MIRA’s strong track record with infrastructure investments in APAC will provide valuable experience as AirTrunk consolidates and expands its Asia-Pacific presence.”
AirTrunk was advised by: Grant Samuel, Goldman Sachs Investment Bank, DLA Piper, Norton Rose Fulbright, Hogan Lovells, KPMG and PwC. MIRA was advised by: Baker McKenzie, King & Wood Mallesons, KPMG and Macquarie Capital. Deutsche Bank was lead debt arranger, advised by Gilbert + Tobin.
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AirTrunk is a hyperscale data centre specialist creating a platform for cloud, content and large enterprise customers across the Asia-Pacific region. The company develops and operates data centre campuses with industry leading reliability, technology innovation and energy efficiency.
AirTrunk’s unique capabilities, designs and construction methodologies allow it to provide customers with a scalable and sustainable data centre solution at a significantly lower operating cost than other providers.
AirTrunk is a private company that is well capitalised to fund its development of data centres across Asia Pacific.
For more information on AirTrunk, visit www.airtrunk.com
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Airbnb announced today that Silver Lake and Sixth Street Partners will invest $1 billion in Airbnb in a combination of debt and equity securities. The new resources will support Airbnb’s ongoing work to invest over the long term in its community of hosts who share their homes and experiences, as well as the work to serve all stakeholders in the Airbnb community.
The desire to explore, connect, have new experiences, and have a comfortable place to call home are universal and enduring. And our commitment to create a greater sense of belonging—for everyone, everywhere—will never change.
Brian Chesky, Airbnb Co-Founder, CEO and Head of Community
Started in the midst of the Great Recession in 2008, Airbnb has rapidly grown into a trusted two-sided marketplace that generates real money for millions of regular people who share their homes and host Experiences. People who share their homes keep up to 97 percent of what they charge for their listings, while guests have easy access to a wide range of places to stay—from budget to luxury—in nearly every country and region in the world.
Airbnb Co-Founder, CEO and Head of Community Brian Chesky commented on how this commitment will enable the company to strategically invest in Airbnb’s community of hosts and be in the strongest possible position as travel rebounds from the COVID-19 pandemic:
“First off, I want to thank Silver Lake and Sixth Street for their incredible partnership and support. They have a well-earned track record for being insightful thought partners who always have a strong sense of where the world is going.
The desire to connect and travel is an enduring human truth that’s only been reinforced during our time apart. But the way this manifests will evolve as the world changes. We’ll see a new flexibility in how people live and work, which means they won’t have to be tethered to one location. And with an emerging interest in travel that’s closer to home, our customers will look to nearby places to visit, and for local experiences to take part in. In response, we see the future of Airbnb as focused on three core products.
First, we will invest in our hosts and bring more of them into our community. Airbnb hosts help guests not just feel welcome in their homes, but also help guests feel uniquely welcomed as locals in the neighborhoods they visit. Hosts are fundamental to what Airbnb is, and what our hosts offer—belonging—will always be desired.
Second, we will focus on longer-term stays. From students needing housing during school, to people on extended work assignments, Airbnb is a place where many have found longer-term housing. In the future, dreams of living in another community will become a growing reality—in homes that come with the benefits of Airbnb.
Finally, the desire to explore new things and connect with other people is year-round—and not limited to just the times when we travel. Airbnb Experiences will continue to offer unique activities led by hosts from around the world who generously share their passions.
The world, our communities, and travel will evolve and change, but there are core human truths that won’t because, well, we’re human. The desire to explore, connect, have new experiences, and have a comfortable place to call home are universal and enduring. And our commitment to create a greater sense of belonging—for everyone, everywhere—will never change.”
Silver Lake Co-CEO and Managing Partner Egon Durban discussed how Airbnb’s resilient global business model will position the company strongly as travel bounces back:
“Airbnb’s revolutionary platform has transformed how people travel, unlocking one-of-a-kind stays and experiences at scale. This was made possible by Brian, Joe and Nate’s inspired leadership and care for both their guest and host community. While the current environment is clearly a difficult one for the hospitality industry, the desire to travel and have authentic experiences is fundamental and enduring. Airbnb’s diverse, global, and resilient business model is particularly well suited to prosper as the world inevitably recovers and we all get back out to experience it.”
Sixth Street Partners CEO and Managing Partner Alan Waxman spoke about how Airbnb is a global community built around stakeholder trust:
“Airbnb created an enormous new category, underpinned by the leading brand and technology platform, as well as a community founded on trust. The company’s achievements speak for themselves, and we are excited by the opportunities on the horizon as they continue to grow their geographic footprint, accommodations and experiences. We’re pleased to partner with this unique company as they navigate through this period focused on hosts, guests, employees, communities, and shareholders.”
Silver Lake and Sixth Street Partners funds’ investment will include $5 million which Airbnb will contribute to its Superhost Relief Fund, which will provide grants worth a combined total of $15 million to Superhosts who rent out their own home and need help paying their rent or mortgage, as well as long-tenured Experience hosts trying to make ends meet. Silver Lake and Sixth Street applaud Airbnb’s long-standing commitment to their host community, especially in the current environment.
Silver Lake is the global leader in technology investing, with over $43 billion in combined assets under management and committed capital and a team of approximately 100 investment and operating professionals located in Silicon Valley, New York, London and Hong Kong. Silver Lake’s portfolio of investments collectively generates more than $230 billion of revenue annually and employs 370,000 people globally. For more information about Silver Lake and its portfolio, please visit silverlake.com.
Sixth Street Partners (“Sixth Street”) is a global multi-asset class investment business with over $34 billion in assets under management as of December 31, 2019. Sixth Street operates eight diversified, collaborative investment platforms across our growth investing, direct lending, par liquid credit, fundamental public strategies, infrastructure, agriculture, opportunities and adjacencies businesses. Our long-term oriented, highly flexible capital base and One Team cultural philosophy allow us to invest thematically across sectors, geographies and asset classes. Founded in 2009, Sixth Street has more than 275 team members including over 140 investment professionals operating from nine locations around the world. For more information, visit sixthstreetpartners.com.