First Data and FLEETCOR Join Forces In New Prepaid Gift Joint Venture
March 06 2017 - 8:00AM
Business Wire
Partnership will provide clients with
comprehensive set of gift-related offerings
First Data (NYSE: FDC), a global leader in commerce-enabling
technology, and FLEETCOR Technologies Inc. (NYSE: FLT), a leading
global provider of fuel cards and workforce payment products to
businesses, today announced the formation of a joint venture that
will consolidate their various gift solutions to drive new value
for their clients.
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The new joint venture combines the gift card businesses of both
companies. This includes First Data’s core gift card business,
Transactions Wireless, Inc.™, and Gyft®, along with FLEETCOR’s
Stored Value Solutions (SVS) prepaid card services and gift card
program management assets. The new entity will provide clients with
broader international reach and a more robust end-to-end
offering.
The combined revenue of the businesses that are to be
contributed to the joint venture by both companies was $362 million
in 2016. First Data will own 57.5 percent of the joint venture and
FLEETCOR will own 42.5 percent.
“We are combining the strengths of both our businesses to give
clients the most robust gift offering available,” said Frank
Bisignano, First Data Chairman and CEO. “The joint venture will
focus on expanding gift card distribution solutions and bringing
new value to clients in a competitive and rapidly growing
marketplace.”
“We are delighted to enter into this agreement with First Data.
By combining our SVS business with First Data’s businesses, we will
be able to serve our clients in a more integrated and more
comprehensive fashion,” said Ron Clarke, FLEETCOR Technologies Inc.
Chairman and CEO.
In 2015, $293 billion was loaded on to prepaid gift cards in the
U.S., according to a December 2016 report from Mercator Advisory
Group. The First Data-FLEETCOR joint venture capitalizes on that
growing marketplace, creating new ways to help merchants expand
their gift programs to leverage the evolution of consumer gifting
habits. For example, in First Data’s 2016 Consumer Insights Study,
respondents indicated they self-purchased gift cards more
frequently, suggesting an expansion of traditional gift card
application.
The collective solution capabilities of First Data and FLEETCOR
will include traditional services and provide expanded choice for
clients and partners seeking digital gift card distribution. The
joint venture will focus on supporting clients with digital gifting
needs, from selling gift cards on their own websites, to using gift
cards to drive promotions, to selling and reloading gift cards
online at gyft.com.
In addition to helping issuers manage their prepaid programs,
the joint venture will help clients acquire new customers, reward
existing ones, distribute the merchant’s cards digitally, lower the
risk of fraud, and reduce the total cost of payment acceptance.
The transaction is subject to regulatory approval and other
customary closing conditions. Davis Polk & Wardwell LLP
provided legal counsel to First Data; Alston & Bird provided
legal counsel to FLEETCOR.
About First Data
First Data (NYSE: FDC) is a global leader in commerce-enabling
technology and solutions, serving approximately six million
business locations and 4,000 financial institutions in more than
100 countries around the world. The company’s 24,000
owner-associates are dedicated to helping companies, from start-ups
to the world’s largest corporations, conduct commerce every day by
securing and processing more than 2,800 transactions per second and
$2.2 trillion per year.
About FLEETCOR
FLEETCOR is a leading global provider of fuel cards and
workforce payment products to businesses. FLEETCOR’s payment
programs enable businesses to better control employee spending and
provide card-accepting merchants with a high volume customer base
that can increase their sales and customer loyalty. FLEETCOR serves
commercial accounts in North America, Latin America, Europe, and
Australia/New Zealand. For more information, please visit
www.FLEETCOR.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20170306005475/en/
Media ContactsMark MurphyFirst
Data212-515-0280Mark.Murphy@FirstData.comorFLEETCOR770-729-2017investor@fleetcor.comorInvestor
RelationsPeter PoillonFirst
Data212-266-3565Peter.Poillon@FirstData.comorFLEETCOR770-729-2017investor@fleetcor.com
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