FleetCor Technologies, Inc. (NYSE:FLT), a leading global provider of fuel cards and workforce payment products to businesses, announced today that on August 9, 2013, it had acquired VB Servicos, Comercio e Administracao LTDA (“VB”) a leading provider of transportation cards and vouchers in Brazil, and on August 26, 2013, FleetCor had entered into an agreement to acquire DB Trans S.A. (“DB”), a leading provider of payment solutions for independent truckers in Brazil. In addition, FleetCor has signed on September 5, 2013 a marketing agreement with Good Card, a leading Brazilian fuel card network operator, to issue fuel cards which operate in Good Card’s network of accepting merchants in Brazil. FleetCor’s acquisition of DB is expected to close during the third quarter of 2013 subject to customary conditions.
In total, FleetCor expects to invest over $300 million in these two acquisitions, which will be financed using a combination of existing cash and borrowings under FleetCor’s revolving credit facility.
“Consistent with our previously disclosed strategy, we have sought attractive growth opportunities in the Brazilian market,” said Ron Clarke, FleetCor’s Chairman and chief executive officer. “We are pleased to position our Company to offer a full-line of transportation, food, and fuel card products for the employer market in Brazil.”
VB is a leading provider of transportation cards (or vale transporte) in Brazil where employers are required by legislation to provide certain employees with prepaid public transportation cards to subsidize their commuting expenses. VB is a market-leader in this space serving over 35,000 business clients, approximately one million employees, and supporting approximately 800 transportation agencies across the country. VB also markets food cards through an agreement with Edenred.DB is a leading provider of prepaid toll, fuel, and payroll card programs for transportation companies in Brazil. Charles Freund, FleetCor’s president of emerging markets, commented, “We expect this acquisition to significantly expand our product offering to the Brazilian transportation segment.”