Signs Brazilian Fuel Card Marketing Agreement with Good Card
NORCROSS, Ga.--(BUSINESS WIRE)--Sep. 10, 2013--
FleetCor Technologies, Inc. (NYSE:FLT), a leading global provider of
fuel cards and workforce payment products to businesses, announced today
that on August 9, 2013, it had acquired VB Servicos, Comercio e
Administracao LTDA (“VB”) a leading provider of transportation cards and
vouchers in Brazil, and on August 26, 2013, FleetCor had entered into an
agreement to acquire DB Trans S.A. (“DB”), a leading provider of payment
solutions for independent truckers in Brazil. In addition, FleetCor has
signed on September 5, 2013 a marketing agreement with Good Card, a
leading Brazilian fuel card network operator, to issue fuel cards which
operate in Good Card’s network of accepting merchants in Brazil.
FleetCor’s acquisition of DB is expected to close during the third
quarter of 2013 subject to customary conditions.
In total, FleetCor expects to invest over $300 million in these two
acquisitions, which will be financed using a combination of existing
cash and borrowings under FleetCor’s revolving credit facility.
“Consistent with our previously disclosed strategy, we have sought
attractive growth opportunities in the Brazilian market,” said Ron
Clarke, FleetCor’s Chairman and chief executive officer. “We are pleased
to position our Company to offer a full-line of transportation, food,
and fuel card products for the employer market in Brazil.”
VB is a leading provider of transportation cards (or vale transporte) in
Brazil where employers are required by legislation to provide certain
employees with prepaid public transportation cards to subsidize their
commuting expenses. VB is a market-leader in this space serving over
35,000 business clients, approximately one million employees, and
supporting approximately 800 transportation agencies across the country.
VB also markets food cards through an agreement with Edenred.
DB is a leading provider of prepaid toll, fuel, and payroll card
programs for transportation companies in Brazil. Charles Freund,
FleetCor’s president of emerging markets, commented, “We expect this
acquisition to significantly expand our product offering to the
Brazilian transportation segment.”
Lastly, FleetCor has signed a long term, fuel card marketing agreement
with Good Card, a leading Brazilian fuel card network operator, with
acceptance at approximately 40% of Brazil’s gas stations. This agreement
provides FleetCor with the rights to issue a comprehensive fuel card
program to the significant number of small and medium enterprises in
Ron Clarke, FleetCor’s chairman and chief executive officer and Eric
Dey, FleetCor’s chief financial officer, will host a conference call
today at 5:00pm ET to discuss FleetCor’s acquisitions and marketing
agreement in Brazil. A live webcast of this conference call will be
available at the “Investor Relations” section of FleetCor’s website (www.fleetcor.com).
The live conference call can also be accessed by dialing (877) 941-8416
or for international callers (480) 629-9808. The Company has posted a
PowerPoint presentation that it intends to use during the conference
call, which will also be available on the “Investor Relations” page of
the Company’s website.
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, Latin America, Europe, Australia and New
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"
or "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 FleetCor’s expectations regarding the transactions described
above. 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 delays or
failures associated with the acquisitions and marketing agreement and
the failure to successfully integrate or otherwise achieve anticipated
benefits from such acquired businesses and marketing agreement; failure
to successfully expand business internationally; the impact of foreign
exchange rates on operations, revenue and income; the effects of general
economic conditions on commercial activity, 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,
2012, filed with the Securities and Exchange Commission (the "SEC") on
March 1, 2013. 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.
Source: FleetCor Technologies, Inc.
FleetCor Technologies, Inc.