FLEETCOR To Benefit From Travelliance Buyout: Here's How
Zacks Investment Research | Oct 07, 2019 10:25PM ET
FLEETCOR Technologies, Inc. (NYSE:FLT) recently announced that it has completed the acquisition of Travelliance — an airline lodging program provider. The financial terms of the deal have been kept under wraps.
Travelliance is engaged in providing lodging solutions to distressed airline passengers, airline crews, and airline employees. The company manages almost 8 million room nights annually.
How Will FLEETCOR Benefit?
The acquisition will help FLEETCOR amplify its room night volume and increase the size of its hotel network. It will also expand the company’s lodging business across new international markets.
Notably, revenues from lodging business increased 13% year over year on a reported basis as well as on a pro-forma and macro-adjusted basis in second-quarter 2019. Revenues, net per room night, improved 25% year over year on a reported basis as well as on a pro-forma and macro-adjusted basis in second-quarter 2019.
Ron Clarke, chairman and chief executive officer at FLEETCOR, stated, “Travelliance’s solutions and hotel network offer an exciting opportunity to grow our lodging business on a global scale.”
The latest move should strengthen FLEETCOR’s competitive position in the lodging business against names like The Castle Group, Inc. Zacks Investment Research
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