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FLEETCOR Technologies, Inc. yesterday announced that it has completed the acquisition of Associated Foreign Exchange (“AFEX”), a cross-border payments provider. The deal was initially announced on Sep 17, 2020. Financial terms have been kept under wraps.
AFEX offers flexible cross-border payment solutions which help small- and medium-sized businesses grow internationally, irrespective of currency barriers.
The buyout marks the addition of AFEX into FLEETCOR’s Cambridge Global Payments, under its corporate payments portfolio. Together, AFEX and Cambridge will handle cross-border payments in more than 145 currencies for nearly 30,000 customers, processing more than $65 billion in annual volume.
Ron Clarke, chairman and chief executive officer at FLEETCOR stated, "With the combination of AFEX and our current cross-border business, we expect the enhanced scale and breadth to accelerate revenue growth in our corporate payments business. The complementary geographic nature of the customer bases provides an immediate boost to our business, and this year, we anticipate the acquisition will be accretive to 2021 adjusted EPS, as we execute our integration plan."
Notably, the company has raised its adjusted earnings per share guidance for 2021 on completion of the AFEX acquisition. Adjusted earnings per share are now anticipated between $12.32 and $12.88 compared with the prior guidance of $12.14-$12.70. The Zacks Consensus Estimate of $12.46 lies within the updated guidance.
The long-term expected earnings per share (three to five years) growth rate for Equifax, Charles River and TransUnion is 14%, 15.5% and 20.9%, respectively.
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From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research SherazMian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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FLEETCOR (FLT) Completes AFEX Buyout, Ups '21 EPS Guidance
FLEETCOR Technologies, Inc. yesterday announced that it has completed the acquisition of Associated Foreign Exchange (“AFEX”), a cross-border payments provider. The deal was initially announced on Sep 17, 2020. Financial terms have been kept under wraps.
AFEX offers flexible cross-border payment solutions which help small- and medium-sized businesses grow internationally, irrespective of currency barriers.
FleetCor Technologies, Inc. Price
FleetCor Technologies, Inc. price | FleetCor Technologies, Inc. Quote
Acquisition to Help Handle Cross Border Payments
The buyout marks the addition of AFEX into FLEETCOR’s Cambridge Global Payments, under its corporate payments portfolio. Together, AFEX and Cambridge will handle cross-border payments in more than 145 currencies for nearly 30,000 customers, processing more than $65 billion in annual volume.
Ron Clarke, chairman and chief executive officer at FLEETCOR stated, "With the combination of AFEX and our current cross-border business, we expect the enhanced scale and breadth to accelerate revenue growth in our corporate payments business. The complementary geographic nature of the customer bases provides an immediate boost to our business, and this year, we anticipate the acquisition will be accretive to 2021 adjusted EPS, as we execute our integration plan."
Notably, the company has raised its adjusted earnings per share guidance for 2021 on completion of the AFEX acquisition. Adjusted earnings per share are now anticipated between $12.32 and $12.88 compared with the prior guidance of $12.14-$12.70. The Zacks Consensus Estimate of $12.46 lies within the updated guidance.
Zacks Rank and Other Stocks to Consider
FLEETCOR Technologies currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some top-ranked stocks in the broader Zacks Business Servicessector are Equifax (EFX - Free Report) , Charles River (CRAI - Free Report) and TransUnion (TRU - Free Report) , each carrying a Zacks Rank #2 (Buy).
The long-term expected earnings per share (three to five years) growth rate for Equifax, Charles River and TransUnion is 14%, 15.5% and 20.9%, respectively.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research SherazMian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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