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FleetCor (FLT) Snaps Up Payroll Card Provider SOLE Financial

Zacks Equity Research

FleetCor Technologies, Inc. FLT, yesterday announced the acquisition of payroll card provider SOLE Financial. SOLE will combine with FleetCor’s digital paycard business. Financial terms were not disclosed.

The move follows acquisition of Nvoicepay in March, which is expected to expand the company’s corporate payments business with full disbursement accounts payable cloud platform.

We observe that FleetCor’s stock gained a massive 56.6% year to date, significantly outperforming the 39.4% rally of the industry it belongs to.

How Will FleetCor Benefit?

The acquisition is expected to extend the company’s payroll and card portfolios and expand its addressable market, thus enabling it better serve small and medium-sized as well as larger businesses.

“SOLE has built an extensive ‘referral network’ among payroll processors and PEO firms, that we hope to extend,” said Ron Clarke, Chairman and Chief Executive Officer of FleetCor.

Acquisition is an important part of FleetCor’s growth strategy and a significant contributor to its top line. Since 2002, it has acquired more than 75 companies and commercial account portfolios. In 2018, FleetCor witnessed $97 million of additional revenues from the acquisitions completed in 2017.

Zacks Rank & Stocks to Consider

FleetCor currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader Zacks Business Services sector are Broadridge BR, Accenture ACN and Automatic Data Processing ADP, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The long-term expected EPS (three to five years) growth rate for Broadridge, Accenture and Automatic Data Processing is 10%, 10.3% and 13%, respectively.

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FleetCor Technologies, Inc. (FLT) : Free Stock Analysis Report
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