8-KOther Events

CORPAY, INC. 8-K Report, Corporate Update (Sep 10, 2013)

Filed September 10, 2013For Securities:CPAY

Summary

Corpay, Inc. (formerly FleetCor Technologies, Inc.) announced significant expansion into the Brazilian market through strategic acquisitions and partnerships. The company acquired VB Servicos, Comercio e Administracao LTDA ("VB"), a provider of transportation and food cards, and entered into an agreement to acquire DB Trans S.A. ("DB"), focused on payment solutions for independent truckers. These moves, totaling over $300 million, are financed by existing cash and credit facilities, signaling a strong commitment to international growth. Additionally, Corpay signed a long-term fuel card marketing agreement with Good Card, a major Brazilian fuel card network operator, enabling them to issue fuel cards within Good Card's extensive merchant network.

Key Highlights

  • 1Corpay, Inc. (formerly FleetCor Technologies, Inc.) is expanding its presence in Brazil.
  • 2Acquired VB Servicos, Comercio e Administracao LTDA, a Brazilian provider of transportation and food cards.
  • 3Entered into an agreement to acquire DB Trans S.A., a Brazilian provider of payment solutions for independent truckers.
  • 4Total expected investment in Brazilian transactions is over $300 million, financed by cash and credit facilities.
  • 5Signed a long-term fuel card marketing agreement with Good Card, a leading Brazilian fuel card network.
  • 6The company is actively pursuing other potential acquisitions globally, with discussions for deals totaling approximately $400 million.
  • 7The acquisition of DB Trans S.A. is expected to close in the third quarter of 2013, subject to customary conditions.

Frequently Asked Questions

The acquisitions in Brazil represent a significant international expansion for Corpay, targeting a large and growing market for transportation and payment solutions. By acquiring VB and DB, and partnering with Good Card, Corpay aims to establish a strong foothold in Brazil, leveraging established networks and market positions.

The total investment of over $300 million for the Brazilian acquisitions is being financed through a combination of Corpay's existing cash reserves and borrowings under its revolving credit facility.

Corpay has signed a long-term fuel card marketing agreement with Good Card, a leading Brazilian fuel card network operator. This agreement allows Corpay to issue fuel cards that will be accepted at merchants within Good Card's network, which covers approximately 40% of gas stations in Brazil, providing access to a significant customer base.

Yes, Corpay is actively pursuing other potential acquisitions in the Americas, Europe, and Asia Pacific regions. The company has signed definitive agreements for one potential acquisition and entered into a letter of intent for another, with a combined potential purchase price of approximately $400 million, to be funded by cash and credit facilities.