FleetCor Technologies has acquired payments processing company Comdata from its parent company Ceridian for $3.45 billion in a bid to expand their payments business.
The move represents a bid by FleetCor, which provides fuel cards and workforce payment products to commercial auto fleets, oil companies and petroleum marketers, to expand its North American business and move into the virtual payments market, significantly increasing FleetCor’s scale and earnings, as well as diversifying its mix of businesses.
FleetCor plance to finance the deal with approximately $2.4 billion in cash 7.3 million shares of FleetCor common stock.
Stuart C. Harvey, Jr., chairman, president, and chief executive officer of Comdata commented:
“This combination marks an exciting new chapter for Comdata. FleetCor has a history of driving synergistic growth for acquired companies and I’m confident Comdata’s businesses can continue to flourish following this transaction for the benefit of all of our stakeholders and, most importantly, the customers we serve. Together, Comdata and FleetCor will create a broader, highly complementary payments business with many strong growth opportunities in the near and long term.”
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