First Data, a global leader in commerce-enabling technology, and FLEETCOR Technologies Inc., a leading global provider of fuel cards and workforce payment products to businesses, have announced the formation of a joint venture that will consolidate their various gift solutions to drive new value for their clients.
The new joint venture combines the gift card businesses of both companies. This includes First Data’s core gift card business, Transactions Wireless, Inc.™, and Gyft®, along with FLEETCOR’s Stored Value Solutions (SVS) prepaid card services and gift card program management assets. The new entity will provide clients with broader international reach and a more robust end-to-end offering.
The combined revenue of the businesses that are to be contributed to the joint venture by both companies was $362 million in 2016. First Data will own 57.5 percent of the joint venture and FLEETCOR will own 42.5 percent.
First Data (NYSE: FDC) is a global leader in commerce-enabling technology and solutions, serving approximately six million business locations and 4,000 financial institutions in more than 100 countries around the world. The company’s 24,000 owner-associates are dedicated to helping companies, from start-ups to the world’s largest corporations, conduct commerce every day by securing and processing more than 2,800 transactions per second and $2.2 trillion per year.
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, Europe, and Australia/New Zealand.
The transaction is subject to regulatory approval and other customary closing conditions. Davis Polk & Wardwell LLP provided legal counsel to First Data; Alston & Bird provided legal counsel to FLEETCOR.
Jones Day is acting as Antitrust counsel to FLEETCOR Technologies Inc. on the deal with a team led by David Wales.
Involved fees earner: David Wales – Jones Day;
Law Firms: Jones Day;
Clients: Fleetcor Technologies Inc;