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.
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