Corpay to purchase AP automation platform Paymerang from Aldrich Capital for $475m
Corporate payment solutions provider Corpay has signed an agreement to acquire Paymerang, a US-based invoice and accounts payable (AP) automation platform, for approximately $475 million, according to a filing made with the Securities and Exchange Commission (SEC) this week.
Corpay to acquire Paymerang for $475m
Founded in 2010 and based in Richmond, Virginia, Paymerang’s platform seeks to automate a range of financial functions for enterprises, including payments, purchase orders, invoices and receivables, among others.
It previously acquired the Australian AI data extraction and analysis platform Sypht, alongside the assets of invoice automation firm KwikTag, from enChoice last April to further its technology suite and product remit.
Corpay says the deal to purchase Paymerang, which it expects to close in Q2 subject to customary closing conditions, will expose its AP automation, cross-border and commercial card solutions to “four attractive vertical markets”, namely education, healthcare, hospitality and manufacturing.
It will also add the 250,000 merchants currently served by its acquisition to its own network, which it claims to be over one million vendors strong at present. The combined businesses are projected to process $120 billion in annual spend.
“This acquisition is right in our wheelhouse and exactly the kind of transaction we find most attractive,” comments Ron Clarke, CEO and chairman of Corpay.
He adds that Paymerang’s alleged growth of “over 20%” in the corporate payments industry will enable Corpay to “accelerate growth and profitability”.
“It will help us sell more in several large verticals where Paymerang has a strong position with satisfied customers, ERPs and partners.”
Paymerang previously claimed last year that it has “consistently grown revenue at an annualised rate exceeding 40%” since 2018 when it received a $26 million investment from Aldrich Capital. The growth equity firm later pumped an additional $10 million into the platform in 2021 and is now selling its interests in Paymerang to Corpay.
For Corpay, the acquisition follows its earlier deal with Brazilian digital mobility solution Zapay, in which it snapped up a 70% stake in March for approximately $56.3 million. Stipulations of this earlier purchase mean Corpay still has the opportunity to purchase the business in its entirety until 2028.
