BofA Finances FleetCor’s Acquisition of Comdata
FleetCor Technologies announced that it has signed a definitive agreement to acquire Comdata from Ceridian, a portfolio company of funds affiliated with Thomas H. Lee Partners (THL) and Fidelity National Financial, for $3.45 billion. Concurrent with the closing of the acquisition, a representative from THL will be appointed to the FleetCor board of directors.
FleetCor will finance the $3.45 billion acquisition with approximately $2.4 billion of new debt and the issuance of approximately 7.3 million shares of FleetCor common stock to Ceridian. The cash payments will be used to pay off Comdata’s outstanding indebtedness.
According to an 8-K filing, Bank of America committed senior secured credit facilities in the aggregate amount of up to $3.785 billion consisting of (a) a revolving A credit facility in the amount of up to $1 billion, (b) a revolving B facility in the amount of up to $35 million, (c) a term loan A facility in the amount of up to $1.7 billion and (d) a term loan B facility in the amount of up to $1.05 billion.
Comdata is a leading business-to-business provider of innovative electronic payment solutions. As an issuer and a processor, Comdata provides fleet, virtual card and gift card solutions to over 20,000 customers. It has approximately 1,300 employees and enables over $54 billion in payments annually.
“We have followed Comdata’s growth and development for many years, and are excited today to be bringing the companies together” said Ron Clarke, chairman and chief executive officer of FleetCor Technologies. “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.”
FleetCor is a global provider of fuel cards and workforce payment products to businesses.
Comdata is a business-to-business provider of innovative electronic payment solutions.
To read the entire press release, click here.
Previously on abfjournal: BofA Agents FleetCor Credit Agreement Expansion to $1.4 Billion, November 8, 2012