First Data and FLEETCOR Join Forces In New Prepaid Gift Joint Venture
First Data has a lot of pull in the commerce-enabling technology and it has some interesting news on the horizon.
It has linked up with FLEETCOR Technologies Inc., a leading global provider of fuel cards and workforce payment products to businesses to create a joint venture that will consolidate their multiple gift solutions in hopes to drive new value for their clients.
The new venture combines the gift card businesses of both respective companies-including First Data’s core gift card business, Transactions Wireless. In addition to Transactions Wireless, Gyft, and FLEETCOR’s Stored Value Solutions Prepaid card services and gift card program management assets. This new program will offer clients with broader international reach and a more plentiful end-to-end offering.
This joint revenue of the businesses that are to be contributed to the combined venture by both respective companies was about $362 million in 2016. First Data will soon own about 58 percent of the joint venture and FLEETCOR will own the remaining 42 and half 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.