Fleetcor Technologies, a US-based provider of fuel cards and workforce payment products and services, has agreed to acquire Cambridge Global Payments, a Canada-based B2B international payments provider, for $675m.
The transaction will be financed through a combination of existing cash and borrowings under Fleetcor’s existing credit facility.
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Subject to regulatory approval and the satisfaction of customary closing conditions, the acquisition is expected to conclude during the third quarter of 2017.
Established in 1992, Cambridge processes more than $20bn in B2B cross-border payments per annum and helps 13,000 business clients make international payments to suppliers and employees.
Additionally, Cambridge’s proprietary technology fulfils the need of SMB and mid-cap businesses, giving its clients the flexibility of making wire, EFT, draft and check payments in over 140 currencies.
Fleetcor believes that the acquisition will enhance global corporate payments capabilities, which will allow the company to pay both domestic and international AP payments for the same client.
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By GlobalDataCommenting on the deal, Fleetcor Technologies chairman and CEO Ron Clarke said: “We have followed the international payments market for several years and are excited to announce the acquisition of a global leader in the industry.
“We like the strategic fit with Cambridge as they focus on international AP payments while FleetCor, via Comdata, focuses on domestic AP payments. Given that all of Cambridge’s customers have domestic AP to pay, we believe the acquisition will result in substantial synergies by integrating Comdata’s domestic AP automation and virtual card solutions into Cambridge’s client base.
“Moreover, we believe that this global (domestic and international) AP automation capability will differentiate FleetCor’s solution in the marketplace to deliver a more holistic global AP solution.”
