French prepaid corporate services provider Edenred has agreed to acquire US-based corporate payment solutions firm Corporate Spending Innovations (CSI) for nearly $600m.
Florida-based CSI offers an accounts payable technology platform, travel solutions, and fleet/fuel card programmes. It has dual-issuing capability for both Mastercard as well as Visa.
Edenred expects the the CSI acquisition deal to be accretive to group earnings before interest and tax (EBIT) from next year. Also it aims to net profit group share from 2020.
Edenred chairman and CEO Bertrand Dumazy said: “With the acquisition of this North American partner, which we know well, we now have many assets to become a major player in the buoyant corporate payment industry.
“CSI is indeed a well-established and fast-growing fintech. We are thereby accelerating the development of this business line, which will contribute to generating ever more sustainable and profitable growth for the Group, particularly in the United States.”
The deal will reach completion early next year, subject to approval from competition authorities.
CSI CEO Keith Stone said: “As one of our most valued partners, Edenred has been able to support and enhance CSI’s global footprint for the past two years.
“This was truly a natural progression and an exciting move that will further ignite CSI’s impressive growth rates. We’re also very excited for what this means for our clients and employees.”