ATLANTA--(BUSINESS WIRE)--May. 1, 2012--
FleetCor Technologies, Inc. (NYSE: FLT), a global leader in providing
fuel card and workforce payment products to businesses, today announced
that it has signed an Arrangement Agreement to acquire CTF Technologies,
Inc. (“CTF”) for $180 million. The transaction is expected to close in
approximately 60 days.
CTF provides fuel payment processing services for over-the-road fleets,
ships, mining equipment, and railroads in Brazil. CTF’s payment platform
links together fleet operators, two of the largest Brazilian banks,
Bradesco and Itau, and the two largest Brazilian oil companies,
Petrobras and Ipiranga. CTF earns revenue primarily from a recurring
transaction fee paid by the oil companies who purchase the CTF system
for their fleet customers under multi-year customer contracts. More than
3 billion liters of fuel were processed through the CTF system in Brazil
“We are pleased to announce the acquisition of CTF, which is consistent
with our global acquisition strategy of identifying attractive assets
with performance upside. We were attracted to CTF for four reasons: 1)
its leading position in the fuel payments market in Brazil, one of the
most attractive emerging markets in the world, 2) its strong
relationships with Petrobras and Ipiranga, which combined have more than
60% market share of fuel retailing in Brazil, 3) the potential to take
the CTF solution to our oil partners around the world, particularly in
emerging markets where fuel theft is a significant problem, and 4) the
fee based business model, whereby CTF takes virtually no credit risk. We
are delighted to now be partners with Petrobras and Ipiranga and look
forward to building the relationships while continuing CTF’s track
record of innovation, efficiency and service,” said Ron Clarke, Chairman
and Chief Executive Officer, FleetCor Technologies, Inc.
“We are pleased to be partnering with FleetCor. We are confident that
they are well positioned to help the company accelerate its growth in
Brazil and throughout the world,” said Arie Halpern, President of CTF
Ron Clarke, FleetCor’s chairman and chief executive officer and Eric
Dey, FleetCor’s chief financial officer, will host a conference call May
2, 2012 at 11:00 ET to discuss FleetCor’s acquisition. A live webcast of
this conference call will be available at the Investor Relations section
of FleetCor’s website (www.fleetcor.com).
The live conference call also can be accessed by dialing (877) 941-4774
or for international callers (480) 629-9760. A replay of the webcast
will be available on FleetCor’s website for approximately one year.
For your convenience, the conference call can be replayed in its
entirety beginning from two hours after the end of the call through May
9, 2012. If you wish to listen to the replay of this conference call,
please dial (877) 870-5176, or for international callers (858) 384-5517
and enter passcode 4536680.
FleetCor is a leading global provider of fuel cards and workforce
payment products to businesses. FleetCor’s payment programs enable
businesses to better control employee spending and provide
card-accepting merchants with a high volume customer base that can
increase their sales and customer loyalty. FleetCor serves commercial
accounts in North America, Latin America, and Europe. For more
information, please visit www.fleetcor.com.
This press release contains forward-looking statements within the
meaning of the federal securities laws. Some of these statements include
those regarding the transaction between FleetCor and CTF, FleetCor’s
future financial and operating results, benefits of the transactions,
future opportunities for the combined company, and any other statements
about FleetCor or CTF management’s future expectations, beliefs, goals,
plans or prospects. Statements that are not historical facts, including
statements about FleetCor's beliefs, expectations and future
performance, are forward-looking statements. Forward-looking statements
can be identified by the use of words such as "anticipate," "intend,"
"believe," "estimate," "plan," "seek," "project" or "expect," "may,"
"will," "would," "could" or "should," the negative of these terms or
other comparable terminology. There are a number of important factors
that could cause actual results or events to differ materially from
those indicated by such forward-looking statements, including the
outcome of any shareholders meeting or court proceeding; difficulties in
integrating CTF or a failure to attain anticipated operating results,
each of which could affect the accretiveness of the acquisition, and the
other factors described in FleetCor’s periodic reports filed with the
Securities and Exchange Commission. FleetCor undertakes no obligation to
update forward looking statements to reflect changed assumptions, the
occurrence of unanticipated events, or changes in future operating
results, financial condition or business over time. Readers are further
advised to review the “Risk Factors” set forth in FleetCor’s Annual
Report on Form 10-K, which further detail and supplement the factors
described in this paragraph.
Source: FleetCor Technologies, Inc.