Corpay, a global powerhouse in corporate payments, has announced a landmark agreement to acquire a 33% stake in AvidXchange Holdings, partnering with TPG to take the company private. As TPG and Corpay Acquire AvidXchange, with the transaction valued at $2.2 billion, positions Corpay as a pivotal player in AvidXchange’s future, with an investment of roughly $500 million at $10 per share. The deal is expected to close in Q4 2025, pending shareholder and regulatory approvals.
AvidXchange, a leading provider of accounts payable automation for the lower middle market – serving industries from real estate and homeowners’ associations to financial services and media – will benefit from the combined expertise and resources of Corpay and TPG to supercharge its growth beyond the public markets.
For Corpay, the investment is a strategic extension of its core offerings in commercial card issuance and payments automation. The agreement also includes an option for Corpay to acquire full ownership of AvidXchange by 2028, further strengthening the company’s position in payments and automation.
Key Takeaways
- Corpay and TPG have partnered to acquire AvidXchange in an all-cash deal at $10 per share. The valuation is roughly a 22% premium over the stock’s close before the deal was announced.
- Under the terms, TPG will be the majority stakeholder in the company, while Corpay will invest around $500 million for a 33% equity share, with an option to acquire more in 2028.
- This is a strategic move that will favor both Corpay and TPG as both companies try to boost their presence in the corporate payments sector. This partnership is expected to strengthen operations as well, as AvidXchange offers automated accounts payable tools and supplier connectivity.
- As the fintech unicorn from Charlotte that went public in 2021, AvidXchange will return to private status after the acquisition goes through.
- AvidXchange currently employs over 1,600 workers, who will receive the same base pay and benefits for at least 12 months after the deal closes, and will continue to operate under the AvidXchange brand as part of normal business operations.
TPG and Corpay Acquire AvidXchange in $2.2 Billion Deal
In early May, TPG and Corpay agreed to buy AvidXchange in an all-cash deal worth $2.2 billion. The offer was announced on May 6, 2025, at $10 a share, which is 22% above its $8.20 closing price on May 6, 2025. That price was about 22% above AvidXchange’s closing price that day. It also stands 16% higher than the 90-day volume-weighted average through that date, and 45% above the $6.89 closing price on March 12, 2025, just before media reports of a possible sale surfaced. After the announcement, its stock jumped nearly 20% in after-hours trading.
Under the deal, TPG will hold the majority stake, and Corpay will invest about $500 million for a 33% share. Corpay can buy the rest in 2028 if it chooses. The transaction must clear regulators and win shareholder approval. If all goes as planned, it should close in the fourth quarter of 2025.
After closing, AvidXchange will become a private company. That status will give it more freedom to invest in growth and to roll out integrated payment tools that drive efficiency, visibility, and control for its customers.
Michael Praeger, AvidXchange’s CEO, said the agreement offers strong value to shareholders and positions the company for long-term success. He noted that over the past 25 years, AvidXchange has built a leading platform in AP automation and payment software. With support from TPG and Corpay, the company will have the resources and focus to expand its platform and deliver new solutions that help clients across the country streamline their accounts payable processes.
TPG sees a big chance in accounts payable automation. It already backs payment companies like Freedom Pay and Toast. Adding AvidXchange gives it software for invoice processing and a network to handle payments in real time. TPG believes businesses need tools to cut manual work, boost security, and get faster payment data.
John Flynn, a partner at TPG, said there’s a big opportunity for companies to automate their accounts payable and make it more efficient, secure, and accurate. AvidXchange is filling that gap with a unique payment network and end-to-end tools that slot directly into existing workflows, giving businesses and their suppliers better connectivity. He added that they’re excited to team up with Michael Praeger and the AvidXchange team, along with Ron Clarke and the Corpay team, to help the platform keep growing.
TPG partner Tim Millikin said their tech team has spent years working on accounts payable automation and has always seen AvidXchange as a leader in the field. He added that today’s businesses need up-to-date payment technology, and as a private company, AvidXchange will be able to keep improving its tools to boost visibility and efficiency throughout the payment process.
Corpay, which used to be called FleetCor, focuses on spend management and payment solutions. It already processes card payments for AvidXchange customers. By taking an ownership stake, Corpay can blend its transaction services with AvidXchange’s software. This could mean one platform for managing invoices and payments, with revenues from subscriptions and transaction fees.
Corpay’s chairman and CEO, Ron Clarke, said they “couldn’t pass up the chance” to join the deal and invest in a big corporate payments business. He said AvidXchange’s AP automation tools support over 8,500 mid-market businesses and fit well with their corporate payments services. He added that they’re excited about the company’s future.
TPG partner John Flynn pointed to a large opportunity. He said many companies still handle payables by hand and need more efficient, accurate systems. His colleague, Tim Millikin, added that modern firms demand modern payment tech. He said AvidXchange can keep improving its tools to give users better visibility and smoother workflows.
The global market for accounts payable automation is growing fast. It was about $4.48 billion in 2024 and is set to reach $6.17 billion in 2025. Analysts expect a compound annual growth rate of 12.6% through 2030. Growth drivers include cloud finance systems, e-invoicing rules, and faster payment networks. Companies aim to cut costs, meet tax rules, and see cash flows in real time.
AvidXchange competes with firms like Tipalti, Bill.com, Stampli, MineralTree, and FreshBooks. Big ERP vendors such as SAP Concur, Oracle, and Sage also offer AP modules. The sector moves quickly, with AI, robotic process automation, and APIs changing how invoices get processed. Providers try to stand out with advanced analytics and touchless workflows.
After the deal news, some analysts noted a competing bid earlier in the week. A British firm, Alpha Group International, had made a cash proposal that AvidXchange turned down. That hinted at a strong interest in the company’s mid-market AP platform. Now, with the public market behind it, AvidXchange can spend more on product development and maybe buy smaller tech companies without quarterly earnings pressure.
The planned structure is a tender offer at $10 per share. If enough shareholders agree and regulators sign off, AvidXchange will leave the NASDAQ and go private. Its board will include people from both TPG and Corpay. And if Corpay exercises its 2028 option, it could own the whole business, depending on performance goals and market conditions.
As a private company, AvidXchange may expand into related areas like accounts receivable automation and financial supply chain tools. TPG’s capital and Corpay’s payment network could help bring in new clients and products. Being free from quarterly reports gives the firm room to invest in AI-driven forecasting and fraud detection. Corpay’s treasury and expense systems might merge with AvidXchange’s invoice-to-pay software, creating a unified solution that handles everything from invoice receipt to supplier reconciliation. That could open new revenue streams and keep customers tied to the platform.
AvidXchange engaged Financial Technology Partners and Barclays for financial advice and turned to Latham & Watkins LLP for legal counsel. TPG enlisted J.P. Morgan Securities LLC, Moelis & Company, and RBC Capital Markets as its financial advisors, while Davis Polk & Wardwell LLP and Schulte Roth & Zabel LLP provided its legal guidance. Corpay’s financial work was advised by Goldman Sachs, with Eversheds Sutherland handling its legal matters.
About Corpay
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Corpay, Inc. (NYSE: CPAY) is a publicly traded corporate payments and expense management company and a member of the S&P 500. Headquartered in the Terminus 100 building in Atlanta, Georgia, the company served over 800,000 business clients in 2024, generating $4.0 billion in revenue and $1.4 billion in adjusted net income.
Founded in 2000, the company was originally known as FleetCor Technologies, and under the leadership of Chairman and CEO Ronald F. Clarke, it grew through a series of strategic acquisitions and partnerships that expanded its reach across more than 100 countries. In January 2023, FleetCor completed the acquisition of UK-based Global Reach Group to enhance its cross-border payment offerings, and on March 25, 2024, the company officially rebranded to Corpay, Inc., trading under the ticker CPAY to better reflect its breadth of corporate payment solutions.
About TPG
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TPG Inc. (NASDAQ: TPG) is a leading global alternative asset management firm founded in San Francisco in 1992 by Jim Coulter and David Bonderman. Headquartered in both San Francisco, California, and Fort Worth, Texas, the firm manages approximately $251 billion in assets across a diversified set of strategies, including private equity, growth capital, real estate, credit, and impact investing. As of March 31, 2025, TPG’s total assets under management reached $251 billion – a 12% increase year-over-year – with fee-earning AUM growing to $143 billion, underscoring its robust fundraising and deployment capabilities.
Under the leadership of sole CEO Jon Winkelried since 2021, TPG operates through five core platforms – Private Equity, Growth, Real Estate, Credit, and Impact Investing – and maintains a presence in over a dozen countries with roughly 400 investment professionals collaborating across disciplines. Bolstering its global reach, TPG completed the $2.7 billion acquisition of Angelo Gordon in 2023 to strengthen its credit and real estate capabilities, and in March 2024 launched a mega Asian buyout fund valued at W6.7 trillion, reflecting its commitment to strategic expansion in high-growth markets.
About AvidXchange
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AvidXchange, Inc. (Nasdaq: AVDX) is a leading fintech company that specializes in automating accounts payable (AP) and payment processes for middle-market businesses and their suppliers, helping organizations cut costs, improve visibility, and drive efficiency. Founded in a Charlotte coffee shop in 2000 by CEO Michael Praeger and David Miller, the company’s AvidPay Network now serves over 8,000 North American companies, has paid more than 1.3 million suppliers across 79.1 million transactions, and managed $242 billion in spend in 2024 alone.
Under the leadership of Co-Founder and CEO Michael Praeger, AvidXchange has grown to more than 1,600 employees and achieved recognition on the Forbes Cloud 100 and Deloitte Technology Fast 500 lists for its rapid expansion and innovation in AP automation. The company went public on the Nasdaq in 2021 under the ticker AVDX. With this acquisition by Corpay and TPG in a $2.2 billion all-cash transaction, AvidXchange will be private again, positioning it to make further strategic investments in its integrated payment solutions.
Conclusion
The $2.2 billion acquisition of AvidXchange by TPG and Corpay marks a major shift in the accounts payable automation space. By going private, AvidXchange gains the flexibility to invest in innovation without public market pressures, while Corpay and TPG strengthen their foothold in financial technology.
With combined resources, industry expertise, and a clear growth strategy, the partnership sets the stage for expanding integrated payment solutions that help businesses modernize their financial operations. As regulatory approvals move forward, all eyes will be on how this alliance reshapes the mid-market payments landscape in the coming years.
