FleetCor To Buy Comdata For $3.45 Bln

(RTTNews) - FleetCor Technologies, Inc. (FLT) said Tuesday that it has agreed to buy Comdata Inc. from Ceridian LLC, a portfolio company of funds affiliated with Thomas H. Lee Partners, L.P. and Fidelity National Financial Inc., for $3.45 billion.

Comdata is a business-to-business provider of innovative electronic payment solutions. As an issuer and a processor, Comdata provides fleet, virtual card, and gift card solutions to over 20,000 customers. It has about 1,300 employees and enables over $54 billion in payments annually.

FleetCor said it will finance the $3.45 billion acquisition with about $2.4 billion of new debt and the issuance of about 7.3 million shares of FleetCor common stock to Ceridian LLC. The cash payments will be used to pay off Comdata's outstanding indebtedness.

The deal is expected to close by the end of December 2014.

Concurrent with the closing of the acquisition, a representative from Thomas H. Lee Partners will be appointed to the FleetCor board of directors.