StockNews.AI
CPAY
StockNews.AI
197 days

Corpay to Acquire Leading Brazilian Mobile Payments Company

1. Corpay acquires Gringo, enhancing vehicle payment solutions in Brazil. 2. Gringo's revenues are growing over 30% annually, indicating strong market demand. 3. The car debts segment is three times larger and under-penetrated than toll payments. 4. Acquisition expected to boost organic revenue growth in Brazil by 3% this year. 5. Synergies anticipated from integrating Gringo into Corpay's broader vehicle payment offerings.

M&A
+0.01%Current Return
VS
+0.65%S&P 500
$379.6102/03 04:18 PM EDTEvent Start
$379.6602/04 09:57 PM EDTLatest Updated
3m saved
Insight
Article

FAQ

Why Bullish?

The acquisition positions Corpay to capture a growing market, similar to past expansions that led to stock appreciation.

How important is it?

Gringo's acquisition is a strategic move to penetrate an under-served market, potentially leading to significant revenue increases for Corpay.

Why Long Term?

The full impact of the acquisition will take time to materialize as integrations happen and revenue growth is realized.

Related Companies

GRNGCPAY
ATLANTA--(BUSINESS WIRE)--Corpay, Inc. (NYSE: CPAY), a global S&P 500 corporate payments company, today announced it has signed definitive documents to acquire Gringo, a leading vehicle registration and compliance payment company in Brazil. Gringo is a super app for car drivers that makes life easier for millions of drivers in Brazil. Gringo’s digital app and national network help drivers pay for vehicle taxes, registration and fines (i.e., “car debts”) instantly. The company is growing revenue over 30% annually. “We’re thrilled to announce the acquisition of Gringo, our second deal in the 'car debts' category,” said Ron Clarke, chairman and chief executive officer, Corpay, Inc. “We’re doubling down in this space for three primary reasons. First, the car debts addressable segment is approximately three times larger than tolls, and significantly less penetrated. So, it gives us an enormous runway. “Second, we expect our new car debts segment (including previously acquired Zapay) to increase Brazil’s overall organic revenue growth rate by three percentage points this year. And, it will be a meaningful contributor to future growth. “And third, we plan to offer our full suite of vehicle payment products including tolls, fuel, parking and insurance to Gringo’s 2.5 million monthly active users. We expect significant synergies from integrating it within our Brazil business.” The transaction is subject to regulatory approval and is expected to close near the end of the first quarter of 2025. About Corpay Corpay (NYSE: CPAY), the Corporate Payments Company, is a global S&P 500 provider of commercial cards (e.g, business cards, fleet cards, virtual cards) and AP automation solutions (e.g., invoice digitization, payments automation, cross border payments) to businesses worldwide. Our solutions result in our customers saving time, mitigating fraud, and ultimately spending less. To learn more visit www.corpay.com

Related News