8-KMaterial AgreementsRegulation FDExhibits & Filings

CORPAY, INC. 8-K Report, Material Agreement (Mar 18, 2016)

Filed March 18, 2016For Securities:CPAY

Summary

FleetCor Technologies, Inc. (now Corpay, Inc.) announced on March 14, 2016, a significant strategic acquisition of Serviços e Tecnologia de Pagamentos S.A. (STP), a Brazilian payment processing company. This acquisition marks a substantial expansion into the Latin American market, significantly increasing FleetCor's geographic footprint and diversification. The transaction price, initially set at R$4.086 billion and estimated to be approximately R$4.2 billion (around US$1.05 billion) at closing, represents a material investment for FleetCor. The deal is subject to customary closing conditions, including regulatory approvals, and is expected to enhance the company's payment solutions offerings and market position within Brazil, a key growth region.

Key Highlights

  • 1FleetCor Technologies, Inc. entered into a definitive agreement to acquire Serviços e Tecnologia de Pagamentos S.A. (STP).
  • 2The acquisition represents a significant expansion into the Brazilian market.
  • 3The transaction price is approximately R$4.086 billion, with an anticipated closing price of R$4.2 billion (approximately US$1.05 billion).
  • 4STP is a payment processing company acquired from a group of shareholders including major concessionaires and fuel retailers.
  • 5The acquisition is subject to regulatory approvals and other customary closing conditions.
  • 6FleetCor hosted a conference call on March 15, 2016, to discuss the details of the acquisition.
  • 7The company filed the acquisition agreement and a related press release as exhibits to the 8-K.

Frequently Asked Questions

The acquisition of STP is primarily aimed at expanding FleetCor's presence into the significant Brazilian market, diversifying its geographic footprint, and enhancing its payment solutions portfolio in Latin America.

The acquisition agreement states a transaction price of R$4.086 billion, with an estimated closing price of approximately R$4.2 billion, which was about US$1.05 billion at the time of the filing.

Yes, the acquisition is contingent upon receiving necessary regulatory approvals and satisfying other customary closing conditions.

STP is being acquired from a shareholder group that includes major concessionaires such as CCR S.A. and Arteris S.A., as well as Raizen Combustiveis S.A. (a joint venture between Shell and Cosan), among others.