Accounts payable automation company AvidXchange is strengthening its position in the banking and financial services sector through the acquisition of BankTEL, the company said Tuesday (Aug. 27).
AvidXchange has reached an agreement to acquire BankTEL Systems, which provides accounting technology to banks. According to a press release, the company counts about 20 percent of U.S. banks as clients, and its takeover will enable AvidXchange to bridge its invoice-to-payment accounts payable technology to those bank customers via BankTEL.
With the acquisition, existing bank customers of BankTEL will be offered AvidXchange's invoice-to-pay solutions, including AvidPay and access to the AvidPay Network of B2B suppliers. AvidPay will be integrated into BankTEL's ASCEND solution for enhanced accounts payable functionality as well as fixed assets, and prepaid and accruals, for banking customers to promote automation while maintaining compliance, the companies said in the announcement.
“This is the fifth acquisition we've made in 10 years and it's unique because of BankTEL's strength in the financial services market,” said AvidXchange CEO and Co-Founder Michael Praeger in a statement. “I know first-hand what it takes to build a successful company from scratch, and the niche BankTEL has been able to carve out with middle market banks is the perfect complement to what we've worked to create over the last 19 years at AvidXchange.”
In another statement, BankTEL President and CEO Boyce Adams Jr. said the company's focus on the financial services market “has allowed us to develop a deep understanding of our customers' businesses and what their needs are. Joining the AvidXchange family gives us the opportunity to provide those customers with something we've never offered them before — a fully integrated payment solution.” He noted BankTEL was founded in 1992.
Last month AvidXchange announced it reached an agreement with SAP Concur that sees the AvidPay Network integrated into the eInvoicing platform Concur Invoice for seamless invoice-to-pay functionality.