MasterCard invests $300M in Corpay, expands partnership

Mastercard (MA) and Corpay (CPAY) announced an expansion of their partnership to deliver a suite of corporate cross-border payment solutions. As a result, Mastercard’s financial institutions and their customers will now have access to cross-border payments choices, including carded and non-carded solutions supporting all ticket sizes. Under the agreement, Mastercard will become a minority investor in Corpay’s cross-border business. The $300M investment – for an approximately 3% equity stake – represents an enterprise valuation of $10.7B, or 20x forward EBITDA multiple. Corpay will be the exclusive provider of currency risk management and integrated large-ticket cross-border payments solutions to Mastercard’s financial institution customers. The companies will extend their decades-long virtual card collaboration, with Corpay exclusively offering Mastercard virtual card programs to its customers.