Corpay and TPG Join Forces in $2.2 Billion AvidXchange Acquisition: A Major Move in Financial Technology
Corpay, a leading corporate payments company based in Atlanta, is making waves in the financial sector with its recent announcement of acquiring a minority stake in AvidXchange. This strategic move, designed to take AvidXchange private, is valued at approximately US$2.2 billion and is set to reshape the landscape for accounts payable automation solutions.
Details of the Acquisition
The acquisition deal is being executed in partnership with TPG, a renowned global investment firm. Under the terms of the agreement:
- Corpay will invest around US$500 million to obtain a 33 percent equity interest in AvidXchange.
- Shareholders of AvidXchange will receive US$10.00 per share in cash.
- The transaction is expected to close in the fourth quarter of 2025, pending necessary shareholder and regulatory approvals.
About AvidXchange
AvidXchange is recognized for its accounts payable automation solutions, primarily catering to lower middle-market businesses across various sectors, including:
- Real estate
- Homeowners associations
- Financial services
- Media
Statements from Leadership
Ron Clarke, the Chairman and CEO of Corpay, expressed enthusiasm about the partnership, stating:
“We’re delighted to partner with AvidXchange leadership and TPG on this transaction. We couldn’t pass up the opportunity to invest in a large, complementary corporate payments business.”
Clarke further elaborated on the investment rationale, highlighting:
- AvidXchange has over 8,500 satisfied customers in complementary verticals.
- The company boasts a large merchant payment network that includes a combination of virtual cards and ACH plus acceptance.
- AvidXchange’s business model features diverse revenue streams from payments and software, high retention rates, and minimal working capital and credit exposure.
Future Prospects
Corpay anticipates that this transaction will positively impact its earnings by 2026. Moreover, the private ownership structure is expected to grant AvidXchange the flexibility needed to pursue profitability effectively. Additionally, Corpay retains the option to acquire the remaining interest in AvidXchange by 2028.
Advisory Support
Goldman Sachs & Co. LLC acted as the exclusive financial advisor to Corpay, while Eversheds Sutherland provided legal counsel throughout the transaction.
For more information on corporate payments and automation solutions, visit Corpay’s official website or check out AvidXchange’s offerings.
