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 Brazil.
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 Zealand.
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.