Corpay, an Atlanta-based corporate payments company, has announced that it has entered into a definitive agreement to acquire a minority stake in AvidXchange as part of a transaction to take AvidXchange private.
The deal is being carried out in partnership with global investment firm TPG, and values AvidXchange at approximately US$2.2 billion.
Under the terms, shareholders will receive US$10.00 per share in cash.
Corpay will invest around US$500 million to obtain a 33 percent equity interest in AvidXchange.
The transaction is expected to close in the fourth quarter of 2025, pending shareholder and regulatory approval as well as customary closing conditions.
AvidXchange provides accounts payable automation solutions primarily to lower middle market businesses, focusing on sectors such as real estate, homeowners associations, financial services and media.
Ron Clarke, Chairman and Chief Executive Officer of Corpay, said,
“We’re delighted to partner with AvidXchange leadership and TPG on this transaction. We couldn’t pass up the opportunity to participate in this transaction and invest in a large, complementary corporate payments business.”
Commenting on the rationale for the investment, Clarke added,
“We’re incredibly impressed with AvidXchange’s assets and capabilities. AvidXchange has over 8,500 highly satisfied customers in complementary verticals. It has a large merchant payment network with a combination of virtual card and ACH plus acceptance. Additionally, we really like AvidXchange’s business model: diverse revenue streams from payments and software, high retention rates, and very little working capital and credit exposure.”
He also noted that Corpay expects the transaction to contribute positively to its earnings in 2026, and that the private ownership structure will provide AvidXchange with greater flexibility to pursue profitability.
Corpay will also retain an option to acquire the remaining interest in the company in 2028.
Goldman Sachs & Co. LLC served as the exclusive financial advisor to Corpay, with legal counsel provided by Eversheds Sutherland.
Featured image credit: edited from freepik
