Corpay Expands Its Global Reach with GPS Capital Markets Acquisition: Details
Portfolio Pulse from Lekha Gupta
Corpay, Inc. (NYSE:CPAY) has announced a definitive agreement to acquire GPS Capital Markets, LLC, a company specializing in cross-border and treasury management solutions. The acquisition is expected to close in early 2025, subject to regulatory approval. Corpay anticipates significant revenue and expense synergies from the deal, which will be accretive to its 2025 cash EPS. The company expects its second quarter 2024 results to align with its financial guidance, projecting revenues of $960 million-$980 million and adjusted EPS of $4.45-$4.55. Corpay's cash and equivalents stood at $3.2 billion as of March 31, 2024. Investors can gain exposure to CPAY via Amplify Mobile Payments ETF (NYSE:IPAY) and T. Rowe Price Small-Mid Cap ETF (NYSE:TMSL).
June 20, 2024 | 9:48 am
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
Corpay's acquisition of GPS Capital Markets is expected to bring significant revenue and expense synergies, boosting its Corporate Payments business. The deal is anticipated to be accretive to 2025 cash EPS.
The acquisition of GPS Capital Markets will enhance Corpay's cross-border payment capabilities and is expected to be accretive to its 2025 cash EPS. This strategic move aligns with Corpay's goal to scale its Corporate Payments business to nearly $2 billion by 2026.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Amplify Mobile Payments ETF (NYSE:IPAY) holds shares of Corpay, which is set to acquire GPS Capital Markets. This acquisition could positively impact IPAY's performance due to the expected synergies and growth in Corpay's business.
As IPAY holds shares of Corpay, the expected positive impact on Corpay's business from the acquisition of GPS Capital Markets could translate into gains for IPAY.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
T. Rowe Price Small-Mid Cap ETF (NYSE:TMSL) includes Corpay in its portfolio. The acquisition of GPS Capital Markets by Corpay could enhance TMSL's performance due to the anticipated synergies and growth in Corpay's business.
TMSL's inclusion of Corpay in its portfolio means that the positive impact on Corpay's business from the acquisition of GPS Capital Markets could benefit TMSL.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50