Corpay Expands with GPS Capital Acquisition

Global payment company Corpay is set to acquire GPS Capital Markets, a cross-border and treasury management solutions provider primarily focused on the US market. This acquisition is intended to enhance Corpays ability to provide business-to-business cross-border and treasury management solutions, particularly for upper-middle market companies in the US.

As per the press release, the acquisition is expected to finalize in early 2025, subject to regulatory approval and customary closing conditions. This transaction is poised to add value with GPS's prestigious client base, expert FX specialists, and advanced FX netting technology.

Ron Clarke, Chairman and CEO of Corpay, described GPS as one of Corpay's most significant deals to date. He pointed out the valuable assets of GPS, which include a top-tier client roster, a skilled team of FX specialists, and market-leading FX netting technology.

Clarke also noted that GPS presents substantial revenue and expense synergies and will positively affect Corpay's 2025 cash EPS. He explained that this acquisition is a major milestone towards expanding Corpays Corporate Payments business to nearly $2 billion by 2026.

Upon completion of the acquisition, Corpay will extend its global reach by processing cross-border payments for around 23,000 customers across six continents, managing transactions in over 145 currencies. This expansion aims to significantly enhance Corpay's capabilities in the international payments arena.

In addition to the acquisition news, Corpay shared its financial outlook for the second quarter of 2024, expecting results to align with the midpoint of the guidance provided in its May 8, 2024 earnings release. Investors and stakeholders can look forward to a detailed report on Corpays Q2 performance in early August.

Last month, Corpay expanded its operations by acquiring Paymerang, an accounts payable automation solutions provider, to enhance its services for corporate clients. This acquisition aims to strengthen Corpay's presence in industries such as education, healthcare, hospitality, and manufacturing.

Corpay emphasized the significant benefits of the Paymerang deal, including adding over 250,000 merchants to its existing network of over 1 million vendors. Additionally, Corpay recently expanded its cross-border payments business by launching a new office in Auckland, New Zealand.