FleetCor Technologies, Inc. (NYSE: FLT), a global provider of fuel cards and workforce payment programs to businesses, today announced that it has acquired certain fuel card assets from GE Capital Australia’s Custom Fleet leasing business.
GE Capital’s “Fleet Card” is a multi-branded fuel card product with acceptance in over 6,000 fuel outlets and over 7,000 automotive service and repair centres across Australia. Through this transaction, FleetCor will acquire the Fleet Card product, brand, acceptance network contracts, supplier contracts, and approximately one-third of the customer relationships with regards to fuel cards. The remaining customer relationships will be retained by Custom Fleet, and are comprised of companies which have commercial relationships with Custom Fleet beyond fueling, such as fleet management and leasing.
Ron Clarke, FleetCor’s Chairman and Chief Executive Officer commented, “We are delighted to announce this deal with GE Capital, and continue our global expansion by entering the Australian market. Fleet Card is a terrific product with near universal acceptance, and we look forward to marketing it more broadly to a wider audience.”
In conjunction with the transaction, FleetCor and GE Capital will enter into a long term agreement under which FleetCor will provide fuel card processing and network services to support Custom Fleet’s retained Fleet Card customer portfolio. Custom Fleet will continue to market FleetCor’s co-branded Fleet Cards as part of Custom Fleet’s bundled fleet management and leasing product offering.Andrew Egan, General Manager for Custom Fleet Australia said, "We are excited to be working with FleetCor, as this long term arrangement will leverage the strengths of both organisations." “We expect this transaction to be accretive by approximately $.03 in adjusted net income per diluted share for the period of time that we will own the business in 2013. The 2013 cash EPS impact is also net of about $1 million in deal related expenses,” said Eric Dey, FleetCor’s Chief Financial Officer.
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