Corpay acquires 34% stake in AvidXchange with option for full ownership

ATLANTA - Corpay, Inc. (NYSE:CPAY), a $20.5 billion market cap company with strong profitability metrics according to InvestingPro, and private equity firm TPG have completed the previously announced take-private transaction for AvidXchange Holdings, Inc., according to a statement released Tuesday.

The corporate payments company invested approximately $550 million for a 34% equity stake in AvidXchange, an accounts payable automation and payment solutions provider with annual revenue of $450 million. Corpay itself generates robust annual revenue of $4.2 billion with an impressive 78% gross profit margin.

Ron Clarke, Chairman and CEO of Corpay, stated the transaction is expected to be "slightly accretive" to the company’s fourth quarter 2025 earnings and accretive to Corpay’s earnings in 2026.

"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," Clarke said.

The deal, initially announced on May 6, 2025, gives Corpay the option to acquire the remaining stake in AvidXchange at a later date.

John Flynn and Tim Millikin, Partners at TPG, expressed optimism about the partnership, noting that Corpay’s involvement "brings additional perspective and insight to the transaction, which we expect will accelerate Avid’s performance."

Corpay, a S&P 500 company, provides commercial cards and accounts payable modernization solutions to businesses globally. The company’s statement indicated the acquisition aligns with its strategic focus on expanding its payment solutions portfolio.

The information in this article is based on a press release statement from Corpay. According to InvestingPro analysis, Corpay currently appears slightly undervalued based on its Fair Value calculations, with analysts setting price targets ranging from $320 to $440. For deeper insights into Corpay’s financials and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

In other recent news, Corpay Inc. reported its second-quarter 2025 earnings, surpassing Wall Street expectations with an earnings per share of $5.13, slightly above the forecasted $5.11. Revenue was reported at $1.1 billion, aligning with projections, showcasing stable financial performance. Despite these positive results, Raymond James lowered Corpay’s stock price target to $392 from $414, citing lodging sector weaknesses while maintaining an Outperform rating. Additionally, Corpay reaffirmed its financial guidance for the third quarter and full year 2025, as initially disclosed in an earlier SEC filing. In a strategic move, Corpay has joined the UK’s Faster Payment Service, enhancing its GBP transaction capabilities for clients. Meanwhile, Corpay has partnered with NCR Voyix Corporation to enable fleet card payments at fuel stations across the United States. This partnership aims to integrate Corpay’s fleet card acceptance with NCR Voyix’s point-of-sale systems by 2026. These developments highlight Corpay’s efforts to strengthen its market position and expand its service offerings.

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