Corpay, Inc. (NYSE:CPAY) disclosed a definitive agreement to acquire GPS Capital Markets, LLC for an undisclosed amount.
Headquartered in Salt Lake City, Utah, GPS Capital Markets offers cross-border and treasury management solutions to upper-middle market companies in the U.S.
Founded in 2002, GPS has several offices throughout the U.S., as well as in Australia, Canada, the European Union and the United Kingdom.
Post deal closure, Corpay will process cross-border payments for roughly 23,000 customers in more than 145 currencies across six continents.
Ron Clarke, chairman and chief executive officer, Corpay said, "GPS is our third largest deal ever...GPS presents significant revenue and expense synergies and will be accretive to our 2025 cash EPS. This acquisition puts us well on our way to scaling our Corporate Payments business to nearly $2 billion by 2026."
Brandon Parke, President and CEO of GPS Capital Markets, stated, "With Corpay's resources and our team's expertise, we are poised to provide even greater value and drive transformative outcomes in the financial markets. The combined capabilities of our two companies will significantly benefit our clients and our employees."
The transaction is anticipated to close in early 2025, subject to regulatory approval and customary closing conditions.
Outlook: Corpay expects its second quarter 2024 results to match the midpoint of the financial guidance earlier provided.
During the first quarter results release, the company stated that it projects second quarter revenues of $960 million-$980 million (vs. consensus of $973.7 million) and adjusted EPS of $4.45-$4.55 (vs. street view of $4.51).
As of March 31, 2024, Corpay's cash and equivalents stood at $3.2 billion.
The company will report its second-quarter results in early August.
Investors can gain exposure to CPAY via Amplify ETF Trust Amplify Mobile Payments ETF (NYSE:IPAY) and T. Rowe Price Exchange-Traded Funds, Inc. T. Rowe Price Small-Mid Cap ETF (NYSE:TMSL).
Price Action: CPAY shares closed higher by 0.14% at $252.45 on Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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