The $2.2B acquisition of AvidXchange, Inc. by TPG and Corpay is the latest example of consolidation in B2B fintech and, more specifically, AP automation. We discuss the recent stock performance of AvidXchange and Corpay, deal structure, and deal implications on broader B2B fintech investment.
1. AvidXchange and Corpay Stock Performance
(indexed to 100 on October 13, 2021, stock price to May 8, 2025)
AvidXchange’s $2.2B acquisition reflects a modest premium over its stock price at the time of the announcement, but a significant discount to its IPO valuation from 2021 ($4.6B), further highlighting the challenges of fintechs in the public markets.
- AvidXchange went public on October 14, 2021, with an IPO price of $24 per share
- AvidXchange was taken private at $10 per share
- After the acquisition announcement, AvidXchange jumped +18% while Corpay remained stagnant at 0%
2. Transaction Details and Spinout Structure
TPG will acquire a majority stake, and Corpay will invest $500 million for a minority stake of 33%. Corpay has the option to buy the rest of the shares in 2028.
Transaction Details:
- Evaluation of $2.2 billions
- All-cash deal at $10 per share, a premium of 22% of May 6, 2025 closing stock price
- Planned completion of transaction in Q4 2025
3. M&A (Merger & Acquisitions) History of AvidXchange and Corpay
(select examples since 2019)
This is the most recent example of Corpay’s highly acquisitive strategy, particularly in AP (accounts payable) automation, where Avidxchange marks the company’s 4th AP automation acquisition in the past six years along with Nvoicepay (2019), Accrualify (2022), and Paymerang (2024)
4. AvidXchange Revenue
(in millions of USD, by solution)
Avidxchange’s revenue spans across three segments with the payment segment having the largest revenue contribution.
- Software: solutions to manage invoices and automate the AP function
- Payments: payments that buyers make to suppliers
- Services: fees related to buyer changes in service requests
5. Corpay Revenue
(in millions of USD, by solution)
Corpay generates revenue across four segments, with corporate payments contributing the largest share.
- Corporate Payments: includes AP automation, virtual cards, and x-border
- Vehicle Payments: solutions across use cases such as fuel, tolls, and parking
- Lodging Payments: traveling accommodations for employees, airline crews, etc.
- Other: includes gift and payroll card operating segments
Commentary/Deal Implications
- Prior to the acquisition announcement, AvidXchange (‘Avid’) had been exploring strategic options amid turbulent market conditions, with the company's stock plummeting 36% earlier in the year (we recently examined public B2B fintech performance HERE) – The acquisition provides a strategic path forward, leveraging the scale of TPG and Corpay to support Avid’s growth and innovation in the AP automation space.
- The private market still sees fintech infrastructure, especially in B2B, as an attractive, long-term play. Marrying infrastructure with vertical specialization (like Avid in Real Estate and Media) is an attractive investment thesis as long as revenue growth can be paired with margin improvement.
- Corpay’s strategic stake shows continued consolidation in CFO software and fintech, especially across AP, AR, and expense management, evidenced by Corpay’s own acquisitions of Paymerang last year and Accrualify in 2022, among other examples (e.g., Modulr’s acquisition of Nook and Paylocity’s acquisition of Airbase).
- It remains to be seen how Corpay’s existing corporate payments assets will complement Avid’s suite of AP automation solutions, but Avid’s 8,500 mid-market customers and 1.35 million suppliers roughly double Corpay’s existing merchant network, and Avid’s c.$80B in processed volume brings Corpay’s total processed volume to c.$200B.
Please do not hesitate to contact Rom Mascetti at Rom@FlagshipAP.com with comments and questions.
