FLEETCOR Invests In Brazilian Vehicle Payments Company; No Financial Terms Disclosed
Portfolio Pulse from Benzinga Newsdesk
FLEETCOR Technologies, Inc. (NYSE:FLT) has completed a majority investment in Zapay, a Brazilian vehicle payments company. This investment is part of FLEETCOR's strategy to expand its Vehicle Payments business in Brazil and provides access to Zapay's two million monthly users. Zapay, known for its digital mobility solutions for paying vehicle taxes, registration, and tickets, is integrated with the National Traffic Departments across all 27 Brazilian states. The company has seen a revenue growth of over 60% annually. FLEETCOR has the option to acquire the remaining shares of Zapay in four years. The partnership aims to leverage cross-selling opportunities between FLEETCOR's and Zapay's customer bases.
March 06, 2024 | 9:15 pm
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FLEETCOR's investment in Zapay marks a strategic expansion in Brazil's vehicle payments market, aiming to capitalize on cross-selling opportunities and access to a growing user base.
FLEETCOR's investment in Zapay is likely to have a positive short-term impact on FLT's stock price due to the strategic expansion in the Brazilian market and the potential for revenue growth from cross-selling opportunities. The investment aligns with FLEETCOR's growth strategy in vehicle payments and taps into a rapidly growing user base, indicating a strong potential for increased market share and revenues in Brazil.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90