FLEETCOR® Completes AFEX Cross-Border Acquisition

Rhea-AI Summary

FLEETCOR Technologies, Inc. (NYSE: FLT) has finalized the acquisition of Associated Foreign Exchange (AFEX), enhancing its corporate payments portfolio. This strategic move strengthens FLEETCOR's position in the global payments market and is expected to accelerate revenue growth in corporate payments. The company anticipates the acquisition will positively impact its 2021 adjusted EPS, raising guidance to a range of $12.32 - $12.88. With AFEX, FLEETCOR aims to unify its corporate payments businesses, maximizing marketing returns and cross-selling opportunities.

Positive

• Acquisition of AFEX enhances corporate payments line, expanding FLEETCOR's market presence.
• Projected increase in 2021 adjusted EPS guidance to $12.32 - $12.88 due to AFEX acquisition.
• Combined processing with Cambridge Global Payments enhances scale, processing payments in 145 currencies.

Negative

• None.

FLEETCOR Technologies, Inc. (NYSE: FLT), a leading global business payments company, today completed the acquisition of Associated Foreign Exchange (AFEX), an international cross-border payments provider. By acquiring AFEX, FLEETCOR^® builds upon its corporate payments line of business and strengthens its position as one of the largest global business payment companies in the world.

AFEX delivers global cross-border payment solutions that help small- and medium-sized businesses (SMBs) break down currency barriers to facilitate international growth. AFEX joins FLEETCOR’s cross-border payments counterpart, Cambridge Global Payments, in its corporate payments portfolio. Combined, AFEX and Cambridge process cross-border payments in more than 145 currencies for approximately 30,000 customers processing more than $65 billion in annual volume.

“With the combination of AFEX and our current cross-border business, we expect the enhanced scale and breadth to accelerate revenue growth in our corporate payments business. The complementary geographic nature of the customer bases provides an immediate boost to our business, and this year, we anticipate the acquisition will be accretive to 2021 adjusted EPS, as we execute our integration plan,” said Ron Clarke, chairman and chief executive officer, FLEETCOR Technologies, Inc.

“We are raising our full year 2021 adjusted EPS guidance range to $12.32 - $12.88 as a result of the completed AFEX acquisition,” said Charles Freund, chief financial officer, FLEETCOR Technologies, Inc.

“FLEETCOR is uniquely positioned in the corporate payments landscape. First, we have an unmatched global presence with corporate payments operations in 12 countries on three continents. Second, we have one of the broadest corporate payments product lines in the market featuring AP automation, SMB online bill pay, cross-border payments, virtual cards, currency risk management, expense management and mobile purchasing solutions,” said John Coughlin, FLEETCOR Group President, Corporate Payments. “As we unify all of our corporate payments businesses including Nvoicepay, Comdata Corporate Payments, Cambridge, AFEX and Roger under the new Corpay brand and UI, we have the opportunity to maximize the return on our marketing spend and capitalize on a tremendous cross-sell opportunity worldwide.”

Eversheds Sutherland provided legal counsel to FLEETCOR. Greenberg Traurig provided legal counsel to AFEX, and BofA Securities provided strategic and financial advice to AFEX.

About FLEETCOR^®

FLEETCOR Technologies (NYSE: FLT) is a leading global business payments company that simplifies the way businesses manage and pay their expenses. The FLEETCOR portfolio of brands help companies automate, secure, digitize, and control payments on behalf of their employees and suppliers. FLEETCOR serves businesses, partners and merchants in North America, Latin America, Europe, and Asia Pacific. For more information, please visit www.FLEETCOR.com.

About AFEX

AFEX is a trusted global payment and risk management solutions specialist with a heritage that dates back to 1979. We offer a comprehensive range of global payment, foreign exchange, and risk management services. We can handle every aspect of a client’s foreign payment needs, from risk consultation to transaction execution, and have a diverse client base. We recognize the distinct requirements of each of our clients and take considerable pride in creating unique and strategically adept global payment and foreign exchange solutions to meet our clients’ financial goals. For more information, please visit www.afex.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210601006043/en/

FAQ

What is the impact of FLEETCOR's acquisition of AFEX?

The acquisition is expected to accelerate revenue growth in FLEETCOR's corporate payments business and improve adjusted EPS for 2021.

How much did FLEETCOR raise its adjusted EPS guidance after acquiring AFEX?

FLEETCOR raised its full year 2021 adjusted EPS guidance range to $12.32 - $12.88 due to the acquisition of AFEX.

How does AFEX fit into FLEETCOR's corporate payments strategy?

AFEX complements FLEETCOR's existing cross-border payments business, enhancing its offerings and customer base.

What are the key benefits of combining AFEX with FLEETCOR's existing operations?

The combination is expected to improve processing capabilities and geographic reach, facilitating better customer service and growth opportunities.