FleetCor to Buy Comdata for $3.45 Billion in Payments Expansion

Tuesday, 12 Aug 2014 04:56 PM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
FleetCor Technologies Inc. said it would buy payments processing company Comdata Inc. from Ceridian LLC for $3.45 billion in its biggest deal as it looks to expand into the virtual payments market.

Comdata, which was acquired by payroll and employee benefits processing company Ceridian in 1995 for $900 million, provides fleet fuel cards for the trucking industry, payroll cards and gift cards among other services.

Thomas H. Lee and Fidelity National Financial Inc took over Comdata in 2007 as part of their $5.3 billion acquisition of Ceridian. Ceridian was separated from Comdata last year.

FleetCor said it would finance the Comdata deal with about $2.4 billion of new debt and the issuance of about 7.3 million common shares to Ceridian.

FleetCor's shares were up nearly 4 percent at $133.61 after the bell on Tuesday.

The company, which has a market capitalization of about $11 billion, has grown rapidly through acquisitions since its founding in 2000. It provides fuel cards and workforce payment products and services for businesses, oil companies and governments.

FleetCor said it expects the deal to add 50 cents-60 cents per share to its adjusted net income in 2015.

Reuters reported in July that FleetCor and buyout firms including Carlyle Group LP and Silver Lake Partners LP were vying to acquire Comdata for more than $3 billion.

Barclays was financial adviser to FleetCor, while Alston & Bird was legal adviser. J.P. Morgan and Deutsche Bank were financial advisers, while Weil Gotshal & Manges LLP was legal adviser to Ceridian.

© 2014 Thomson/Reuters. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

FT's Wolf: Future Financial Crisis 'Inevitable'

Thursday, 18 Sep 2014 22:08 PM

The global financial system hasn't improved enough since the 2008 financial crisis to prevent another one, says Martin W . . .

Britain's Pound Rallies as Optimism Grows for Scottish 'No' Vote

Thursday, 18 Sep 2014 18:40 PM

The British pound rose to a two-week high against the dollar Friday on speculation Scotland rejected independence in a r . . .

JPMorgan's Kelly: Government's 'War on Risk' Holding Back Economy

Thursday, 18 Sep 2014 21:45 PM

The government and Federal Reserve are hurting the economy by over-disciplining banks and enacting bad policy, says Davi . . .

Most Commented
Top Stories

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved