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FleetCor Acquires Brazilian Fuel Payments Processor
May 2, 2012
FleetCor Technologies, a U.S.-based fleet card issuer-processor, recently announced the company's acquisition of CTF Technologies for $180 million. CTF Technologies provides fuel payment processing services for over-the-road fleets, ships, mining equipment, and railroads in Brazil. From the company's press release.
"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.
The U.S. market for fleet card issuing and processing services is highly penetrated. Many of the major U.S. market participants are expanding their business overseas, but FleetCor may be the most geographically diversifeid. This also is not FleetCor's first Latin American acquisition. The company acquired the Mexican assets of NovoPayment, a prepaid card services povider and program manager, in March 2012.
to read more from the press release.
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