Atlanta-based Corpay is expected to close the deal in the second quarter
Published
May 9, 2024
Robyn Sidersky
Governor Ralph Northam (center) with the Paymerang team at the company’s office, courtesy of J&D Photo LLC
Chesterfield County-based payments and invoice automation company Paymerang has signed a definitive agreement to be acquired by Atlanta-based enterprise payments processor Corpay for $475 million, according to a Corpay SEC filing and press release.
The transaction is expected to close in the second quarter of the year, subject to regulatory approval and standard closing conditions. McLean-based private equity firm Aldrich Capital Partners is divesting Paymerang, following acquisition of the company in 2018 following an investment of 26 million dollars.
Corpay’s acquisition of Paymerang strengthens the Atlanta-based company’s presence in education, healthcare, hospitality and manufacturing, according to the press release. Paymerang has 300 employees and the company will remain where it is, with no leadership changes planned, a company spokesperson told Virginia Business.
“This acquisition is in our business and exactly the type of transaction we find most interesting. It is a business growing at over 20%, in the enterprise payments space, where we can accelerate growth and profitability,” Ron Clarke, Corpay’s president and CEO, said in a statement. “It will help us sell more into several major verticals where Paymerang is well positioned with satisfied customers, ERPs and partners.”
Paymerang has over 250,000 merchants and Corpaly’s network has over 1 million suppliers and together the companies will process $120 billion in annual spending.
“Partnering with Aldrich has been a game changer for us on this journey. They have provided more than just capital; they have actively participated in refining our go-to-market strategies and scaling our sales model. Their operational expertise has helped us expand our product offering and guided us through a period of rapid expansion, leading to an astonishing 1,200% growth since 2017,” said Nasser Chanda, CEO of Paymerang, in a statement. “Today, by joining Corpay, we are poised to expand our offering to include cross-border payments and commercial card solutions, marking an exciting new chapter for our team. This transition is a major win for our customers, partners, and the Richmond business community.”
In April 2023, Paymerang acquired Sypht, an Australian AI data mining and analytics platform, and the assets of KwikTag, an invoice automation company. Paymerang extended to southwest Virginia in August 2022, creating 50 jobs in Wise County.