Corpay’s Strategic Investment in AvidXchange

Corpay’s investment in AvidXchange fills a critical functionality gap for the payments firm, aligning with the increasing demand for accounts payable automation within the underrepresented middle market. AvidXchange specializes in providing SaaS-based AP automation and payment solutions that streamline and automate AP workflows for smaller enterprises.

Private equity firm TPG will maintain a majority stake in AvidXchange, while Corpay is committing approximately $500 million for a 33% equity share. The acquisition is anticipated to finalize in Q4 2025, contingent upon shareholder and regulatory approvals; the board of directors at AvidXchange has already approved this deal.

During the pandemic, AvidXchange gained prominence as many businesses sought to modernize their analog processes and systems due to remote work scenarios and the inefficiencies inherent in manual operations. This shift accelerated the adoption of digital financial tools among smaller companies, positioning AvidXchange well for growth.

Expanding Its Market Segments

This transaction is part of a series of acquisitions Corpay has undertaken to expand its B2B payment and automation services. In 2021, Corpay acquired Roger, a global AP software platform for small businesses, renaming it as Corpay One. Following this, in the subsequent year, Corpay integrated Accrualify, a cloud-based payment platform tailored for mid-sized companies. With AvidXChange now added to its portfolio, Corpay offers a flexible corporate payments solution adaptable to businesses of all sizes.

“This merger brings significant synergies,” noted Hugh Thomas, Lead Analyst of Commercial and Enterprise Payments at Javelin Strategy & Research. “Corpay primarily caters to larger markets, whereas AvidXChange serves a middle-market clientele. By combining these entities, both gain broader market representation, and Corpay acquires an established customer base for its mid-market solutions.”

Fueling “Inorganic Growth”

In another move toward inorganic growth, Corpay recently sold a minority stake in its stock to Mastercard. This partnership positions Corpay as the exclusive provider of currency risk management and integrated large-ticket cross-border payment solutions for Mastercard’s financial institution customers.

“These developments underscore a broader industry trend towards inorganic growth and a more comprehensive presence across the procure-to-pay value chain,” observed Thomas.