FleetCor Acquires Comdata for $3.45 Billion

FleetCor Technologies, Norcross, GA

FleetCor Technologies, Norcross, GA

FleetCor Technologies Inc., announced in a statement that it has signed a definitive agreement to buy Comdata Inc. for $3.45 billion.

FleetCor a leading global provider of fuel cards, and workforce payments products to businesses, plans to buy $2.4 billion of new debt and issue as well as about 7.3 million of its shares to Ceridian LLC which owns Comdata, a Norcross, Georgia-based Company said in a statement yesterday.

As per the terms of the deal, FleetCor, which is a supplier of specialized payment products and services to commercial auto fleets, oil companies and petroleum marketers will expand in North America and will commence virtual bank-card payments business. The acquisition will benefit FleetCor in terms of earnings and diversity, as indicated by the statement issued.

“That’s a transformational acquisition for FleetCor,” Wayne Johnson, an analyst at Raymond James Financial Inc. in Atlanta, said in a phone interview. “It expands their domestic business dramatically.”

With customers globally replacing cash and checks with electronic payments, deals through credit and debit cards are increasing rapidly. According to the data compiled by Financial Technology Partners LP, a San Francisco-based investment bank, initial six months saw 125 pending and finished deals in payment industry, which was a 76 percent increase from the first half of last year. Thus, payment-services companies are competing to be a market leader using innovations and by expanding overseas.

“We expect the acquisition to be meaningfully accretive to earnings in fiscal year 2015,” FleetCor Chief Financial Officer Eric Dey said in the statement. “The new credit facility will also provide additional liquidity for future business development activity.”

Comdata will put in 50 cents to 60 cents to FleetCor’s balanced net income for every share in 2015, as indicated by the announcement. FleetCor said it predicts that the arrangement will be finished before the year is over. Barclays Plc prompted FleetCor and JPMorgan Chase & Co. furthermore Deutsche Bank AG prompted Ceridian.

Comdata issues as well as carries out processes for electronic payments for auto fleets and also provides virtual and gift cards. Ceridian LLC is owned by Fidelity National Financial Inc., which is the largest title insurer in the U.S.

Carrie Ann
Carrie Ann is Editor-in-Chief at Industry Leaders Magazine, based in Las Vegas. Carrie covers technology, trends, marketing, brands, productivity, and leadership. When she isn’t writing she prefers reading. She loves reading books and articles on business, economics, corporate law, luxury products, artificial intelligence, and latest technology. She’s keen on political discussions and shares an undying passion for gadgets. Follow Carrie Ann on Twitter, Facebook

Recent Posts

Some Microsoft employees stayed at data centers during Pandemic to keep all systems going

Some Microsoft employees stayed at data centers during Pandemic to keep all systems going

The Covid-19 pandemic ravaging the world for more than a year has forced companies and organizations to find viable solutions to keep the business going. Most found a solution in w
2 days ago
Meme stocks frenzy and 3 companies to follow

Meme stocks frenzy and 3 companies to follow

The doom and gloom about the stock market that has been predicted since the pandemic started has abated somewhat with the resilience shown by investors (helped by low-interest rate
2 days ago
US Space Force allows repurposed SpaceX rocket to launch GPS satellite

US Space Force allows repurposed SpaceX rocket to launch GPS satellite

A GPS navigation satellite built by Lockheed Martin is set to ride a reused SpaceX booster on a launch from Cape Canaveral, Florida, Thursday. It will be the first time a military
3 days ago
Disney boss says 40 pc ad revenue went to streaming sites, no plans of ad supported Disney+

Disney boss says 40 pc ad revenue went to streaming sites, no plans of ad supported Disney+

Walt Disney CEO Bob Chapel says the company’s advertising revenue for the upcoming fall television season was strong and went up by “double-digits” compared to 2019.
4 days ago
BlackRock ETFs breach $3 trillion mark in May

BlackRock ETFs breach $3 trillion mark in May

BlackRocks’ exchange-traded fund crossed $3 trillion for the first time in May, in sync with the ETF industry’s race to an all-time high of $9 trillion.
5 days ago
Flagship Pioneering, investor in Moderna raises $3.4 billion funds

Flagship Pioneering, investor in Moderna raises $3.4 billion funds

Flagship Pioneering, the bioplatform company, and the venture capital investor in Moderna, today announced that it had raised additional funding of $2.23 billion, which brings its
6 days ago