FleetCor + Comdata
GA-based FleetCor Technologies has completed the previously announced acquisition of Comdata from Ceridian. The deal was valued around $3.45 billion.
FleetCor to Acquire Comdata
FleetCor Technologies fuel cards and workforce payment products has signed a definitive agreement to acquire Comdata from Ceridian for $3.45 billion. Concurrent with the closing of the acquisition, a representative from THL will be appointed to the FleetCor board of directors.Comdata provides fleet, virtual card, and gift card solutions to over 20,000 customers and has approximately 1,300 employees to facilitate over $54 billion in payments annually. Cash payments will be used to pay off Comdata’s outstanding indebtedness.
MoneyGram Posts Revenue Up 3% Y/Y
Moneygram posted 1Q/11 revenue with a total revenue up 3% to $294.0 million, compared with the year ago figure of $286.5 million, while total fee and other revenue was up 3% to $290.0 million from $280.9 million in the first quarter of 2010. This was due in part to money transfer transaction volume growing 14%, thanks to a 17% year-over-year increase in non-U.S. sends.
Also with global agent locations having increased 18% over the year ago number of locations to 233,000, MoneyGram increased total revenue for the Global Funds Transfer segment 5% to $269.8 million from the year ago figure of $256.7 million. The segment reported operating income of $26.4 million and an operating margin of 9.8% while money transfer transaction volume increased 14%, with fee and other revenue increasing 8 percent to $239.6 million in the first quarter of 2011 compared with 1Q/10 figures of $222.7 million.
Additional disclosures indicate the cash-to-account program was introduced in the Philippines with Banco de Oro, enabling consumers to transfer money from select MoneyGram locations in the United States, Malaysia, Greece and Hong Kong directly into the bank accounts of recipients in the Philippines; its presence in Brazil with the addition of super agent OM D.T.V.M., which launched MoneyGram’s services at sub-agent locations throughout the country; and forged agreements with InComm for implementation of the MoneyGram “Xpress” in-lane money transfer product. InComm will assist MoneyGram in the distribution and activation of MoneyGram Xpress packages, which will be available to U.S. consumers in select outlets in InComm’s network of more than 225,000 retail locations.
Moneygram International Forges Recapitalization Agreement
MoneyGram International global payment services has entered into a recapitalization agreement with affiliates of Thomas H. Lee Partners to convert all of their Series B Preferred into common stock in accordance with the terms of the Series B Preferred, and Goldman Sachs will convert all of its Series B-1 Preferred into shares of Series D Participating Convertible Preferred Stock. The Recapitalization Agreement provides that THL and its co-investors will receive approximately 28.2 million additional shares of common stock and $140.8 million in cash, and Goldman Sachs will receive approximately 15,504 additional shares of Series D Preferred (equivalent to 15.5 million shares of common stock) and $77.5 million in cash as consideration for completing the recapitalization transaction. In addition, the Company is currently working with certain of its relationship banks to put in place a new senior secured credit facility comprised of a revolver and a term loan, which would refinance the Company’s existing senior secured credit facility and provide the funding for the recapitalization transaction.
MONEYGRAM DEAL
MoneyGram has amended its merger with Thomas Lee Partners and Goldman Sachs. Under the revised terms investors will be able to purchase about 79% of MoneyGram for $760 million. The transaction will also be conditioned to acceptable terms and closing conditions of all parties by March 14. MoneyGram provides global payment services through remittance and payment processing solutions for financial institutions and retail customers, had a 2006 annual revenue of $1.16 billion and approximately 143,000 global money transfer agent locations in 170 countries.
MoneyGram’s Partial Buyout Deal Changes
MoneyGram has amended its merger with Thomas Lee Partners and Goldman Sachs. Under the revised terms investors will be able to purchase about 79% of MoneyGram for $760 million. The transaction will also be conditioned to acceptable terms and closing conditions of all parties by March 14. MoneyGram provides global payment services through remittance and payment processing solutions for financial institutions and retail customers, had a 2006 annual revenue of $1.16 billion and approximately 143,000 global money transfer agent locations in 170 countries.
EURONET 4Q/07
Euronet Worldwide posted fourth quarter revenues of $263.7 million, compared to $166.8 million for 4Q/06. Ria Envia, the third-largest global money transfer company, drove the revenue growth. Net income was $19.6 million, compared to $15.3 million for the fourth quarter 2006. “EFT Processing” posted revenues of $53.1 million, compared to $42.2 million for 4Q/06. Transactions processed were 169.8 million, compared to 128.1 million transactions in the same period last year. The EFT Segment completed the quarter with 11,347 ATMs owned or operated. “Prepaid Processing” reported revenues of $155.4 million, compared to $123.7 million for the fourth quarter of last year. Transactions processed were 172.7 million, compared to 132.0 million transactions in the fourth quarter 2006. The “Money Transfer” segment reported fourth quarter revenues of $55.2 million, compared to $0.9 million for the fourth quarter 2006. Transactions processed were 4.1 million, compared to 0.1 million processed in the fourth quarter 2006. For complete details on Euronet’s latest results visit CardData (www.carddata.com).
Euronet Profits Rise 28% in 4Q/07
KS-based Euronet Worldwide posted fourth quarter revenues of $263.7 million, compared to $166.8 million for 4Q/06. Ria Envia, the third-largest global money transfer company, drove the revenue growth. Net income was $19.6 million, compared to $15.3 million for the fourth quarter 2006. “EFT Processing” posted revenues of $53.1 million, compared to $42.2 million for 4Q/06. Transactions processed were 169.8 million, compared to 128.1 million transactions in the same period last year. The EFT Segment completed the quarter with 11,347 ATMs owned or operated. “Prepaid Processing” reported revenues of $155.4 million, compared to $123.7 million for the fourth quarter of last year. Transactions processed were 172.7 million, compared to 132.0 million transactions in the fourth quarter 2006. The “Money Transfer” segment reported fourth quarter revenues of $55.2 million, compared to $0.9 million for the fourth quarter 2006. Transactions processed were 4.1 million, compared to 0.1 million processed in the fourth quarter 2006. For complete details on Euronet’s latest results visit CardData ([www.carddata.com][1]).
[1]: http://www.carddata.com
Wal-Mart MoneyCenters Extends MoneyGram
Thomas Lee Partners and Goldman, Sachs are making a $700 million+ investment into MoneyGram International. The Company also entered into an agreement with affiliates of Goldman Sachs to provide debt financing of up to $500 million, with additional $200 million to follow. MoneyGRam also announced a multi-year extension through January 2013 of its financial services agreement with Wal-Mart. MoneyGram provides the money transfer, urgent bill payment and money order services for customers in more than 3,500 Wal-Mart stores, including Wal-Mart MoneyCenters. MoneyGram has more than 143,000 agents worldwide. In December, Euronet Worldwide propositioned MoneyGram with an offer of a tax-free, all-stock transaction acquisition valued at $1.65 billion. (CF Library 2/13/07)
Stockholders Approve Ceridian Sale & Board
Ceridian Corporation has announced that its stockholders approved the adoption of the merger agreement with an affiliate of Thomas H. Lee Partners, L.P. and Fidelity National Financial and reelected all 7 directors The preliminary tabulation indicates that more than 99% of the shares voted were cast in favor of the transaction. The number of shares voted in favor of the transaction represented approximately 74% of the total shares outstanding and entitled to vote at the meeting. On May 30, 2007, Ceridian and affiliates of THL Partners and FNF entered into a definitive merger agreement, pursuant to which THL Partners and FNF would acquire all of the outstanding common stock of Ceridian for $36 per share in cash, subject to certain conditions, valuing the total transaction at approximately $5.3 billion. Ceridian is a human resources outsourcing company.
Bill Ackman Takes on the Ceridian Deal
Ceridian, which includes major payment processor Comdata, is coming under fire from its largest shareholder over its $5.3 billion merger with Thomas H. Lee Partners and Fidelity National Financial. Pershing Square Capital Management says the deal isn’t valued fully and the company should be split up. Pershing, which holds nearly a nearly 15% stake in Ceridian, has hired Lazard Freres and Sullivan & Cromwell to explore alternatives. The activist hedge fund, managed by Bill Ackman, says it may also extend its long feud with Ceridian’s management while it continues its proxy contest. Ceridian says within the next several days it expects to file its proxy statement, which will contain more information about the Board’s process and review of strategic alternatives. Ceridian also says its Board welcomes involvement by shareholders and is prepared to review any proposals that might result in a superior proposal per the merger agreement. The Board says it remains committed to its goal of maximizing shareholder value through its review of all alternatives. Ceridian’s Comdata division is a processor and issuer of credit, debit and stored value cards, primarily for the trucking and retail industries in the USA. (CF Library 5/31/07)
Ceridian/Comdata is Going Private
Ceridian, which includes major payment processor Comdata, is going private following a merger deal with Thomas H. Lee Partners and Fidelity National Financial. The all cash transaction is valued at $5.3 billion. The deal represents a premium of 17% over Ceridian’s closing share price on February 12th, the last trading day prior to the public announcement that Ceridian had commenced the exploration of strategic alternatives. THL Partners and FNF expect to bring co-investors into the transaction. Ceridian is a major provider of human resources serving 25 million employees and 110,000 companies in 38 countries worldwide. Ceridian’s Comdata division is a processor and issuer of credit, debit and stored value cards, primarily for the trucking and retail industries in the USA. The deal is expected to close in the fourth quarter.