The Governor’s Office of Economic Development announced AvidXchange, Inc. will expand its Utah operation, adding up to 218 jobs to the community, nearly $1.8 million in new state revenue and $3.5 million in capital investment.
“Utah’s labor market is attractive to innovative companies like AvidXchange, and we look forward to the company’s contributions to the state’s fintech sector,” said Val Hale, executive director of GOED. “We see it happen again and again: Once a company experiences Utah firsthand, they know it’s one of the best locations for their growth.”
AvidXchange acquired Utah-based Piracle Inc. in 2015 and has maintained employees in the state since then. Headquartered in Charlotte, North Carolina, the company selected Utah for its West Site expansion to better serve a wider customer base. AvidXchange is a leading provider of accounts payable and payment automation solutions for midmarket businesses with more than 6,000 customers nationwide. The company’s automation software increases control and visibility in the invoice payment process to reduce processing time, maximize efficiency and lower processing costs for payables.
“AvidXchange is thrilled to expand our operations in our Salt Lake City location and support the economic development in the state of Utah. As we grow as a company, it is imperative to us that we have a large presence throughout the United States to ensure that we can continue to provide great support for our customer base throughout the country,” said Michael Praeger, CEO and co-Founder of AvidXchange. “Utah is a great hub for technology and innovation, and AvidXchange looks forward to being a larger part of the tech community and creating a positive impact on the local economy with the creation of over 200 jobs.”
AvidXchange will create up to 218 jobs over the next five years. The total wages in aggregate are required to exceed 110 percent of the county average wage. Projected new state wages over the life of the agreement are expected to be approximately $47,046,117. Projected new state tax revenues, as a result of corporate, payroll and sales taxes, are estimated to be $1,796,236 million over five years.
“AvidXchange is another great company taking advantage of Utah’s strengths in finance and technology,” said Theresa Foxley, president and CEO of the Economic Development Corporation of Utah. “We are grateful for the role the company will play in growing fintech in the state.”
AvidXchange may earn up to 20 percent of the new state taxes they will pay over the five-year life of the agreement in the form of a post-performance Economic Development Tax Increment Finance (EDTIF) tax credit rebate. As part of the contract with AvidXchange, the GOED Board of Directors has approved a post-performance tax credit rebate not to exceed $359,247. Each year as AvidXchange meets the criteria in its contract with the state, it will earn a portion of the total tax credit rebate.
The company is working closely with the local community to determine the best location for the project. Exact location will be determined at a future date.