“Cyber Monday” was a busy one for two Charlotte firms – AvidXchange and Premier Inc. – but not for shopping. Instead, AvidXchange raised more cash and Premier acquired two firms for $325 million.
Premier invested $48 million in buying Raleigh-based chain firm Aperek two years ago.
The details:
- AvidXchange raises more capital
AvidXchange, which recently raised $3.5 million in additional funding, has added another $14.5 million through a private stock offering, according to a filing with the Securities and Exchange Commission.
The bill processing technology firm filed a Form D with the SEC on Nov. 28. The filing listed a total offering amount of $14,500,007, with no equity left to be sold, notes North Carolina Business News Wire.
Two investors were involved in the deal, the Form D said.
From the proceeds, $690,000 will be used as sales commission “payable to an entity affiliated with Mr. McLaughlin, a member of the company’s board of directors,” AvidXchange said. No other details were provided regarding the use of money raised via this offering.
AvidXchange helps companies pay their bills by providing a solution that streamlines the accounts payable process. According to its website, all of AvidXchange’s solutions are “SaaS based,” which means there’s one platform for clients to use.
Outside of North Carolina, AvidXchange also has regional offices in New Jersey, Texas and Utah, with over 800 employees.
AvidXchange has been recognized as one of the 50 fastest-growing private companies in the Charlotte area for four consecutive years, ranked among Deloitte’s Fast 500 this past year, and recently was named to the top 100 tech companies in North America by Red Herring.
- Premier buys group purchasing organizations for $325 million
Charlotte-based Premier Inc. has reached an agreement to acquire Innovatix LLC and Essensa Ventures LLC — two health care purchasing organizations — for $325 million.
The transaction is expected to be completed before the end of 2016, subject to customary closing conditions. In the 12 months ended June 30, 2016, the two acquired companies generated approximately $88 million in revenue and $50 million in net income. reports North Carolina Business News Wire.
Currently, Premier owns 50 percent of Innovatix. GNYHA Holdings LLC an affiliate of the Greater New York Hospital Association, owns the other 50 percent of Innovatix and 100 percent of Essensa.
Both Innovatix and Essensa are care group purchasing organizations (GPOs) serving institutional health care providers that are outside the acute care hospital or health system.
“This transaction complements Premier’s core supply chain services offering by expanding and consolidating our GPO capabilities into the high-growth continuum of care market,” said Susan DeVore, president and chief executive officer of Premier, in a statement.
Charlotte-based Premier is a health care company that works with approximately 3,750 U.S. hospitals and 130,000 other providers. Net revenue stood at $1.16 billion in fiscal year 2016, up 15 percent from the prior year. Net income of $235.2 million remained relatively unchanged.
