EDENRED (EPA:EDEN) - Edenred: Edenred completes the acquisition of CSI and that of TRFC

Transparency directive : regulatory news

09/01/2019 18:11

Press release
January 9, 2019

EDENRED COMPLETES THE ACQUISITION OF CSI AND THAT OF TRFC

Edenred, the world leader in transactional solutions for companies, employees
and merchants, has announced the completion of its acquisition of Corporate
Spending Innovations ("CSI"), one of the leading providers of automated
corporate payment software in North America. The Group has also finalized the
acquisition of 80% of the share capital of The Right Fuelcard Company ("TRFC")
group, the number four fuel card program manager in the United Kingdom. Both
transactions have been approved by the relevant competition authorities and
completed in accordance with the agreements signed between the parties and
announced on November 8 and November 27, 2018, respectively. The two companies
will be fully consolidated in Edenred's financial statements as from January 1,
2019.

Edenred completes the acquisition of CSI, marking its entry into the
fast-growing North American corporate payment market

Acquiring CSI will enable Edenred to step up its development in the
fast-growing corporate payment segment, enhance its digital payment technology
platform and significantly increase its exposure to the North American
market.

Headquartered in Florida, CSI is one of the leading North American providers of
corporate payment solutions, working with a portfolio of more than 800
corporate clients to facilitate payments to their 475,000 vendors. In 2018, the
fintech processed around 900,000 transactions, for payment volumes of around
$11 billion, and forecasts adjusted EBITDA(1) of $26 million for the full year.
Edenred expects CSI to generate annual revenue growth of around 20% in the
coming years.

CSI was acquired for around $600 million. The transaction will be accretive to
Group EBIT from 2019 and to net profit, Group share from 2020.

Edenred finalizes the acquisition of TRFC, establishing a foothold in the UK
fleet and mobility solutions market

The acquisition of the TRFC group will enable Edenred to continue expanding in
the field of fleet and mobility solutions by moving into the United Kingdom,
one of Europe's largest markets.

Based in Leeds and Glasgow, the TRFC group helps 27,000 corporate clients
optimize the management of their heavy and light vehicle fleets. Its 150,000
cardholders can fill up at 90% of UK service stations using monobrand or
multibrand fuel cards. The TRFC group is estimated to have generated more than
£11 million in EBITDA in 2018.

(1) EBITDA adjusted for non-recurring items.

The acquisition of 80% of the TRFC group's share capital(2) represented an
outlay of around £95 million for Edenred and will be accretive to EBIT and net
profit, Group share from 2019.

The two companies will be fully consolidated in Edenred's financial statements
as from January 1, 2019.

Edenred is the world leader in transactional solutions for companies, employees
and merchants, with business volume of more than EUR26 billion generated in
2017, of which 78% through digital formats. Whether delivered via mobile,
online platform, card or paper voucher, all of these solutions mean increased
purchasing power for employees, optimized expense management for companies and
additional business for partner merchants. Edenred's offer is built around
three business lines:
  * Employee benefits (Ticket Restaurant(r), Ticket Alimentación, Ticket Plus,
Nutrisavings, etc.)
  * Fleet and mobility solutions (Ticket Log, Ticket Car, UTA, Empresarial,
etc.)
  * Complementary solutions, including corporate payments (Edenred Corporate
Payment), incentives and rewards (Ticket Compliments, Ticket Kadéos) and
public social programs.
The Group brings together a unique network of 44 million employees, 770,000
companies and public institutions, and 1.5 million merchants.
Listed on the Euronext Paris stock exchange and part of the CAC Next 20 index,
Edenred operates in 45 countries, with close to 8,000 employees.

Follow Edenred on Twitter: www.twitter.com/Edenred

The logos and other trademarks mentioned and featured in this press release are
registered trademarks of Edenred S.A., its subsidiaries or third parties. They
may not be used for commercial purposes without prior written consent from
their owners.

CONTACTS

Media Relations

Anne-Sophie Sibout
+33 (0)1 74 31 86 11
anne-sophie.sibout @edenred.com

Anne-Sophie Sergent
+33 (0)1 74 31 86 27
anne-sophie.sergent@edenred.com

Matthieu Santalucia
+33 (0)1 74 31 87 42
matthieu.santalucia@edenred.com

Investor Relations

Solène Zammito
+33 (0)1 74 31 88 68
solene.zammito@edenred.com

Loïc Da Silva
+33 (0)1 74 31 87 09
loic.dasilva@edenred.com

(2) Rontec, a service-station management company, and the Bayford group, a
specialist in fuel distribution in the United Kingdom, now each hold 10% of the
TRFC group's share capital.

www.edenred.com

EDENRED's latest news

19/04/2024 08:18

EDENRED (EPA:EDEN) - Edenred: Edenred completes the acquisition of CSI and that of TRFC

Transparency directive : regulatory news

EDENRED's latest news

Other stories