ATLANTA - In a significant move within the corporate payments and automation industry, Corpay, Inc. (NYSE: CPAY) and TPG have officially completed their acquisition of AvidXchange Holdings, Inc. The transaction, initially announced on May 6, 2025, has been finalized, marking a pivotal moment for all involved parties.
Corpay invested approximately $550 million to secure a 34% equity stake in AvidXchange, a $450 million revenue company specializing in accounts payable (AP) automation and payment solutions. The deal also includes an option for Corpay to purchase the remaining stake in the future, further strengthening its position in the financial technology sector.
"We expect the transaction to be slightly accretive to the fourth quarter of 2025, and accretive to Corpay earnings in 2026", said Ron Clarke, Chairman and CEO of Corpay. He added, "We’re thrilled to partner with TPG on this transaction. The combined team is squarely focused on accelerating revenue and profit growth to a place where we would exercise our option to purchase the remaining equity of AvidXchange."
TPG, a leading global investment firm, expressed similar enthusiasm for the partnership. "We’re excited to get underway to fully realize the potential within AvidXchange", said John Flynn and Tim Millikin, Partners at TPG. "Partnering with Corpay brings additional perspective and insight to the transaction, which we expect will accelerate Avid’s performance."
While the terms of the deal position both Corpay and TPG for growth, the companies acknowledge the inherent challenges. The press release issued by Corpay includes forward-looking statements cautioning against placing undue reliance on projections. Corpay emphasized that the anticipated financial benefits are based on preliminary information, internal estimates, and management assumptions, which remain subject to change due to market conditions and other uncertainties.
This acquisition aligns with Corpay's ongoing efforts to expand its portfolio of corporate payment solutions and follows its strategic plan to drive revenue growth and improve customer offerings. As a global provider of commercial cards, invoice and payment automation, and cross-border payments, Corpay aims to leverage AvidXchange’s expertise to further enhance its market presence.
The partnership between Corpay and TPG underscores the growing importance of innovative payment solutions in today’s business environment. With AvidXchange's established presence in the AP automation space, this collaboration is poised to play a significant role in shaping the future of fintech.
For further information, Corpay’s investor relations representative, Jim Eglseder, and corporate media relations contact, Chad Corley, are available for inquiries.
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