Corporate Payments leader Corpay completes acquisition, with Group President Mark Frey discussing the strategic moves behind the deal
Corpay Strengthens Corporate Payments Division with Acquisition of GPS Capital Markets
Corpay, a leading corporate payments-focused company, has announced the acquisition of GPS Capital Markets for $725m. The US-based provider of cross-border payments and treasury management solutions will significantly boost Corpay's Corporate Payments division.
GPS Capital Markets is known for its netting technologies and balance sheet hedging capabilities, making it a strategic fit for Corpay's post-acquisition strategy. The acquisition prioritizes expanding netting opportunities, enhancing balance sheet hedging capabilities, and increasing cross-border payments revenue share.
Approximately 75% of GPS Capital Markets' customer base is based in the United States, primarily from cross-border payments and treasury management solutions. This customer base, along with GPS's proprietary technology, will contribute to significant revenue growth in the cross-border payments segment for Corpay.
The GPS acquisition complements Corpay’s existing cross-border payments infrastructure, aligning with the company's broader strategy to offer comprehensive FX and risk mitigation solutions that extend beyond payments. By integrating GPS’s FX and treasury risk management expertise, Corpay aims to bolster its balance sheet hedging services. This enables clients to better manage currency risk on their financial statements.
Moreover, GPS Capital Markets strengthens Corpay’s ability to offer netting solutions to corporate clients, especially mid-market and enterprise segments. This reduces operational complexity and hedging costs, enhancing corporate treasury efficiency. These capabilities have the potential to be applied to the needs of larger clients and Tier 2 and 3 banks.
Mark Frey, Group President of Corpay Cross-Border Solutions, commented on the opportunities and priorities for the GPS acquisition, stating, "GPS brings a strong mid-market customer base and cutting-edge netting and hedging technologies that will enable us to expand our cross-border payments revenue and attract larger corporate clients."
The acquisition of GPS Capital Markets is the third-largest completed by Corpay to-date and is intended to grow its Corporate Payments business. Corpay rebranded from Fleetcor earlier this year, with its Corporate Payments division seeing the strongest revenue growth for the company in recent years. The ongoing acquisition strategy includes integrating GPS Capital Markets with Paymerang, another acquisition this year.
The integration of GPS Capital Markets is expected to enhance Corpay's Corporate Payments division significantly. The acquisition is driven by the potential to expand its Corporate Payments business, with Corpay projecting a 22% year-over-year revenue increase from cross-border payments and aiming for $2 trillion market growth by 2030. This integration is expected to add approximately $0.50 per share EPS accretion in 2025 and 2026.
- The acquisition of GPS Capital Markets, a US-based provider known for its netting technologies and balance sheet hedging capabilities, will propel Corpay's Corporate Payments division, strengthening its ability to invest in expanding netting opportunities and enhancing balance sheet hedging capabilities.
- The integrating of GPS Capital Markets' proprietary technology and customer base, primarily from cross-border payments and treasury management solutions, into Corpay's existing infrastructure, will foster significant revenue growth in the cross-border payments segment, enabling the company to attract larger corporate clients and invest in expanding its Corporate Payments business.
