Georgia's thirteenth largest fintech company, FleetCor recently announced the completion of its acquisition of Travelliance.
The airline lodging program provider, Travelliance has made it easier to manage distraught passengers as well as airline crews and employees for over 30 years, handling over eight million rooms annually. This procurement will not only allow FleetCor to expand its room night volume but help to boost the size of its hotel network. It will also develop the company’s lodging business across new international markets.
“Travelliance’s solutions and hotel network offer an exciting opportunity to grow our lodging business on a global scale,” said Ron Clarke, chairman and CEO of FleetCor. “Their focus on the airline industry is a great complement to our broader corporate travel emphasis.”
While Ted Scislowski, CEO, Travelliance, stated that the company is “thrilled to join the Fleetcor team. With Fleetcor’s scale and resources, Travelliance can provide the full extent of services beyond our client’s expectations. As a technology leader in the industry, we can now further our technology innovations in ways previously unimaginable in the travel industry.”
FleetCor’s earnings released in August exceeded expectations, with an 11% year-over-year revenue increase to $647.1 million for the quarter compared to an estimation of $634.18 million. Clarke stated that Q2 was “probably one of the best quarters in quite some time.”
Hoping to improve its competitive position in the lodging sector, Fleetcore also recently closed two other acquisitions, purchasing Nvoicepay and SOLE Financial. Clarke mentioned that the company’s acquisition pipeline is “still active,” and acquisitions are a significant contribution to its top line. During the third quarter, FleetCor experienced $9 million of added revenues from its 2019 acquisitions alone. The most recent acquisition of Nvoicepay is expected to expand its corporate payments business with full expenditure accounts payable cloud platform.
A notably cash-rich company, FleetCor had cash, cash equivalents and restricted cash of $1.5 billion, with no long-term debt to clear-off as of September this year. This expansive amount gives the company the freedom to pursue acquisitions and other investments.
FlettCor expects between 9% and 11% revenue growth for the rest of the year.