Business
Corpay Invests Alongside TPG to Acquire AvidXchange
ATLANTA, May 06, 2025--Corpay, Inc. (NYSE: CPAY), a leading corporate payments company, today announced that it has signed a definitive agreement to make a minority investment in AvidXchange Holdings, Inc (NASDAQ: AVDX) ("AvidXchange") 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.
About this update from Corpay, Inc.
[{"type":"text","content":"Makes $500 million minority investment in take-private transaction with option to acquire 100%","length":94,"tagName":"p","attribs":{}},{"type":"text","content":"ATLANTA, May 06, 2025--(BUSINESS WIRE)--Corpay, Inc. (NYSE: CPAY), a leading corporate payments company, today announced that it has signed a definitive agreement to make a minority investment in AvidXchange Holdings, Inc (NASDAQ: AVDX) ("AvidXchange") 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.","length":413,"tagName":"p"},{"type":"text","content":"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.","length":253,"tagName":"p"},{"type":"text","content":"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.","length":208,"tagName":"p"},{"type":"text","content":""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.","length":277,"tagName":"p"},{"type":"text","content":""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."","length":446,"tagName":"p"},{"type":"text","content":""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."","length":260,"tagName":"p"},{"type":"text","content":""Corpay ha...