NORCROSS, Ga. — A fleet card services company is switching hands.
FleetCor Technologies Inc. is spending US$3.45 billion to acquire Comdata Inc., which is currently owned by Minneapolis, Minnesota-based Ceridian LLC and Fidelity National Financial Inc. out of Jacksonville, Florida.
Comdata provides fleet cards, fuel management services and electronic payment solutions to over 20,000 customers and handles over US$54 billion in payments annually. In Canada, it offers a Comdata MasterCard branded corporate fleet card.
FleetCor manages fuel card programs for fuel companies including Shell, BP, and Husky. It also has a Mastercard branded credit card under the Universal Fleet brand.
According to FleetCor, the acquisition of Comdata will help expanding FleetCor’s North American fuel card business into new and under-served markets, give the company a toehold in the virtual payments processing business and increase its overall scale, diversity and earnings base.
“Comdata’s virtual payments business will add a completely new growth leg to FleetCor. We believe that the combination will result in significant synergies as we implement our operating disciplines to their portfolio of businesses,” said FleetCor chair and CEO Ron Clarke. “We have followed Comdata’s growth and development for many years, and are excited today to be bringing the companies together.”