Corporate payments company Corpay, Inc. (NYSE:CPAY) has signed a definitive agreement to make a minority investment in AvidXchange Holdings, Inc (NASDAQ:AVDX) as part of a transaction to take AvidXchange private alongside TPG for $10.00 per share in a cash transaction that values AvidXchange at $2.2 billion.
Under the agreement, Corpay will invest approximately $500 million for a 33% equity stake in the company. The transaction is expected to close in the fourth quarter of 2025, subject to shareholder and regulatory approval and standard closing conditions.
AvidXchange is a leading provider of accounts payable (AP) automation solutions to lower middle market companies with a focus on several verticals including real estate, HOA, financial institutions and media.
“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,” said Ron Clarke, Chairman and CEO of Corpay.
“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+ 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.”
“We expect the transaction to be accretive to Corpay earnings in 2026, and the take-private transaction structure gives the company the flexibility to transform and accelerate profit growth. We have the option to buy the rest of the company in 2028.”
“Corpay has a long track record of driving value through innovative products and high-quality customer service,” said John Flynn and Tim Millikin, Partners at TPG. “They bring an important combination of capital and insight to the transaction. We are pleased to invest alongside the Corpay team.”
Goldman Sachs & Co. LLC acted as exclusive financial advisor to Corpay, and Eversheds Sutherland acted as legal counsel to Corpay.
