Expands Corporate Payments Business into Adjacent Cross-Border
Payments Market
Acquisition Expected to be Immediately Accretive to Earnings Upon
Closing
NORCROSS, Ga.--(BUSINESS WIRE)--May 1, 2017--
FLEETCOR Technologies, Inc. (NYSE: FLT), a global provider of fuel cards
and workforce payment products to businesses, announced today that it
has signed a definitive agreement to acquire Cambridge Global Payments
(“Cambridge”), a leading B2B international payments provider.
Cambridge, founded in 1992, processes over $20 billion in B2B
cross-border payments annually, helping 13,000 business clients make
international payments to suppliers and employees. Cambridge’s
proprietary technology serves the needs of SMB and mid-cap businesses,
enabling its clients the flexibility of making wire, EFT, draft and
check payments in over 140 currencies. Cambridge is headquartered in
Toronto, Canada.
“We have followed the international payments market for several years
and are excited to announce the acquisition of a global leader in the
industry,” said Ron Clarke, chairman and chief executive officer
of FLEETCOR Technologies, Inc. “We like the strategic fit with Cambridge
as they focus on international AP payments while FleetCor, via Comdata,
focuses on domestic AP payments. Given that all of Cambridge’s customers
have domestic AP to pay, we believe the acquisition will result in
substantial synergies by integrating Comdata’s domestic AP automation
and virtual card solutions into Cambridge’s client base. Moreover, we
believe that this global (domestic and international) AP automation
capability will differentiate FleetCor’s solution in the marketplace to
deliver a more holistic global AP solution.”
“We are excited to join the FLEETCOR team. This is the right fit and a
natural evolution of our business. FLEETCOR brings synergistic corporate
payment products, access to a much greater global footprint, and deep
pockets that will allow Cambridge to accelerate its growth trajectory,”
said Gary McDonald, chief executive officer of Cambridge.
Rationale
The acquisition of Cambridge is expected to provide the following
benefits to FLEETCOR:
1. Immediate cash EPS accretion, with long-term EPS growth potential
2. Provides entry into the B2B cross-border payments market, a $145B
global revenue market opportunity
3. Enhanced global corporate payments capabilities, enabling FLEETCOR to
pay both domestic and international AP payments for the same client
Transaction Details
The transaction price is approximately $675 million, which will be
financed using a combination of existing cash and borrowings under
FLEETCOR’s existing credit facility. The transaction is expected to
close in the third quarter of 2017, subject to regulatory approval and
the satisfaction of customary closing conditions.
“We expect the acquisition to be accretive to earnings in 2017 and our
financial leverage will approximate 2.9x post-close,” said Eric Dey,
chief financial officer of FLEETCOR Technologies, Inc.
Alston & Bird LLP served as legal counsel to FLEETCOR. Morgan, Lewis &
Bockius LLP served as legal counsel to Cambridge, and Financial
Technology Partners (FT Partners) served as exclusive strategic and
financial advisor to Cambridge.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of the federal securities laws. Statements that are not
historical facts, including statements about FleetCor's beliefs,
expectations and future performance, are forward-looking statements.
Forward-looking statements can be identified by the use of words such as
"anticipate," "intend," "believe," "estimate," "plan," "seek,"
"project," "expect," "may," "will," "would," "could" or "should," the
negative of these terms or other comparable terminology. Examples of
forward-looking statements in this press release include statements
relating to the anticipated consummation of the acquisition, its
accretiveness to earnings, operating synergies, its impact on future
opportunities and long-term grown in domestic, international, and
cross-border payments, and the impact on our liquidity. These
forward-looking statements are subject to a number of risks and
uncertainties that could cause actual results to differ materially from
those contained in any forward-looking statement, such as failure to
complete, or delays in completing, this acquisition or other anticipated
new partnership arrangements or acquisitions; failure to successfully
integrate or otherwise achieve anticipated benefits from this
acquisition or other partnerships or acquired businesses; the impact of
foreign exchange rates on acquisition prices, operations, revenue and
income; changes in credit risk of customers and associated losses; the
actions of regulators relating to domestic or international payments or
resulting from investigations; failure to maintain or renew key business
relationships; failure to maintain competitive offerings; failure to
maintain or renew sources of financing; the effects of general economic
conditions on domestic or international payments, as well as the other
risks and uncertainties identified under the caption "Risk Factors" in
FleetCor's Annual Report on Form 10-K for the year ended December 31,
2016, filed with the Securities and Exchange Commission on March 1,
2017. FleetCor believes these forward-looking statements are reasonable;
however, forward-looking statements are not a guarantee of performance,
and undue reliance should not be placed on such statements. The
forward-looking statements included in this press release are made only
as of the date hereof, and FleetCor does not undertake, and specifically
disclaims, any obligation to update any such statements or to publicly
announce the results of any revisions to any of such statements to
reflect future events or developments.
About FLEETCOR
FLEETCOR is a leading global provider of fuel cards and workforce
payment products to businesses. FLEETCOR's payment programs enable
businesses to better control employee spending and provide
card-accepting merchants with a high volume customer base that can
increase their sales and customer loyalty. FLEETCOR serves commercial
accounts in North America, South America, Europe, and Australia/New
Zealand. For more information, please visit www.FLEETCOR.com.
About Cambridge Global Payments
Cambridge Global Payments is a leading provider of integrated B2B
cross-border payment services. As a trusted partner for close to 25
years, Cambridge delivers innovative solutions designed to address the
unique international payment needs of businesses. Cambridge’s
award-winning capabilities and industry-leading technologies simplify
the way businesses connect with the global marketplace. As one of the
largest bank-independent providers globally, Cambridge is flexible and
responsive, with offices across North America, Europe, and Australia.
For more information, please visit www.cambridgefx.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170501006125/en/
Source: FLEETCOR Technologies, Inc.
FLEETCOR Technologies, Inc.
Investor Relations, 770-729-2017
investor@fleetcor.com
