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FLEETCOR (FLT) Announces Plan to Buy UK-Based Global Reach Group

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FLEETCOR Technologies, Inc. has been continuously acquiring and investing in companies both in the United States as well as internationally, with a view to expand its customer base, headcount and operations, as well as diversify its service offerings across industries.

The digital payments solution provider yesterday announced that it has agreed to acquire UK-based cross-border payments provider, Global Reach Group. The transaction is currently subject to regulatory approval and is expected to be completed in the fourth quarter of 2022.

Established in 2001 and headquartered in London, Global Reach is a leading foreign exchange specialist that offers international payments, risk management and strategic hedging solutions to institutional and corporate clients.

Buyout to Enhance FLEETCOR’s Cross-Border Payments Capability

The acquisition strengthens FLEETCOR’s global position as a non-bank cross-border provider by increasing its scale of payments.

Management expects the acquisition to be immediately accretive after completion. Overlapping footprints of the acquirer and the acquired in the UK and Canada should pave the way for quick integration.

“Global Reach is a fantastic addition to our existing cross-border business that can be quickly integrated into our global business," said Ron Clarke, chairman and chief executive officer, FLEETCOR.

The company’s shares have gained 11.1% over the past six months against 9.2% decline of the industry it belongs to and 15.4% fall of the Zacks S&P 500 composite.

Zacks Rank and Stocks to Consider

FLEETCOR currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

Some stocks in the broader Zacks Business Services sector that investors can consider are Avis Budget Group, Inc. (CAR - Free Report) , Cross Country Healthcare (CCRN - Free Report) and Automatic Data Processing, Inc. (ADP - Free Report) .

Avis Budget sports a Zacks Rank #1 at present. CAR has a long-term earnings growth expectation of 19.4%. 

Avis Budget delivered a trailing four-quarter earnings surprise of 102%, on average. 

Cross Country Healthcare sports a Zacks Rank of 1. CCRN has a long-term earnings growth expectation of 6.9%.

Cross Country Healthcare delivered a trailing four-quarter earnings surprise of 29.2%, on average. 

Automatic Data Processing carries a Zacks Rank of 2 (Buy), currently. ADP has a long-term earnings growth expectation of 12%.

Automatic Data Processing delivered a trailing four-quarter earnings surprise of 6.2%, on average.

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