Chesterfield fintech Paymerang to be acquired for $475M

Chesterfield County-based payment and invoice automation company Paymerang has signed a definitive agreement to be acquired by Atlanta-based corporate payments processor Corpay for $475 million, according to an SEC filing by Corpay and a news release.

The transaction is expected to close in the second quarter of the year, subject to regulatory approval and standard closing conditions. McLean-based Aldrich Capital Partners, a growth equity firm, is parting with Paymerang, after acquiring the company in 2018 following a $26 million investment.

Corpay’s acquisition of Paymerang expands the Atlanta’s company presence in education, health care, hospitality and manufacturing, according to the news release. Paymerang has 300 employees and the company will stay where it is, with no leadership changes expected, a company spokesperson told Virginia Business.

“This acquisition is right in our wheelhouse and exactly the kind of transaction we find most attractive. It’s a business growing over 20%, within corporate payments, where we can accelerate growth and profitability,” Corpay Chairman and CEO Ron Clarke said in a statement. “It will help us sell more in several large verticals where Paymerang has a strong position with satisfied customers, ERPs and partners.”

Paymerang has more than 250,000 merchants and Corpaly’s network is more than 1 million vendors and together the businesses will process $120 billion in annual spending.

“Partnering with Aldrich was a game-changer for us during this journey. They provided more than just capital; they were actively involved in refining our go-to-market strategies and scaling our sales model. Their operational expertise helped us expand our product line and steered us through a period of rapid expansion, leading to an astonishing 1200% growth since 2017,” Paymerang CEO Nasser Chanda said in a statement. “Now, by joining Corpay, we are set to broaden our offerings 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 Australian-based AI data extraction and analysis platform Sypht and the assets of KwikTag, an invoice automation company. Paymerang expanded to Southwest Virginia in August 2022, creating 50 jobs in Wise County.