Corpay’s investment in AvidXchange addresses a key functionality gap for the payments firm, meeting the rising demand for accounts payable automation in the underserved middle market. AvidXchange, a provider of SaaS-based AP automation and payment solutions, digitizes and automates AP workflows for smaller enterprises.
Private equity company TPG will hold the majority of AvidXchange’s stock. Corpay will invest approximately $500 million for a 33% equity stake in the company. The $2.2 billion transaction is expected to close in Q4 2025, subject to shareholder and regulatory approval. The deal has already been approved by AvidXchange’s board.
The pandemic put AvidXchange on the map. Many merchants took the opportunity to review their analog processes and systems in favor for a more modern approach, driven by remote work scenarios and the inefficiencies of manual operations. This shift accelerated the adoption of digital financial tools among smaller firms. AvidXchange was well positioned to capitalize on the trend.
Expanding its Market Segments
The deal is the latest in a long line of acquisitions for Corpay as it seeks to broaden its B2B payment and automation capabilities. In 2021, Corpay acquired Roger, a global AP software platform for small businesses, and rebranded it as Corpay One. A year, later, Corpay acquired Accrualify, a cloud-based payment platform for mid-sized companies. With AvidXchange added to the list, Corpay now offers a modular corporate payments product for businesses of all sizes.
“There are great potential synergies here,” said Hugh Thomas, Lead Analyst of Commercial and Enterprise Payments at Javelin Strategy & Research. “Corpay has always skewed more large market, while AvidXchange’s customer base runs more to the middle market. In one stroke, both entities gain better segment representation, and Corpay gets an installed customer base for its mid-market solutions.”
Fueling “Inorganic Growth”
Corpay itself recently sold a minority share of its stock to Mastercard. Through this partnership, Corpay becomes the exclusive provider of currency risk management and integrated large-ticket cross-border payment solutions for Mastercard’s financial institution customers.
“This development, alongside the recent Mastercard announcement, is evidence of a general desire among large providers for inorganic growth and a broader presence across the procure-to-pay value chain,” Thomas said.
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