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(Reuters) -Business payments firm Corpay reported a 7% increase in its first-quarter adjusted profit on Tuesday, driven by growth in its corporate payments segments.
Resilient U.S. business and consumer spending, supported by a strong labor market and rising wages, has enabled the front-loading of purchases ahead of the imposition of import duties.
Atlanta, Georgia-based Corpay helps businesses and consumers better manage their expenses through its payment and spend management solutions.
The company's corporate payments business, which automates and manages vendor payments, saw its revenue reach $352.7 million, a 33% increase from the previous year, driven by higher client spending volumes across all regions.
On an adjusted basis, Corpay reported a profit of $322.9 million, or $4.51 per share, for the quarter ended March 31, compared to $301.3 million, or $4.10 per share, during the same period last year.
In a separate announcement, Corpay said it is partnering withglobal alternative asset manager TPG in a deal to buy payments solution firm AvidXchange Holdings for $2.2 billion.
As part of the agreement, Corpay will invest about $500 million for a 33% equity stake in AvidXchange Holdings.
(Reporting by Ateev Bhandari in Bengaluru; Editing by Mohammed Safi Shamsi)