FLEETCOR Buys Travelliance To Grow Global Lodging Business

Fuel and commercial payments company FLEETCOR has acquired the airline lodging platform Travelliance, FLEETCOR announced in a press release on Thursday (Oct. 3).

Travelliance assists airlines with lodging management by making it easier to manage distraught passengers as well as airline crews and employees. The company handles about eight million overnights each year.

“Travelliance’s solutions and hotel network offer an exciting opportunity to grow our lodging business on a global scale,” said Ron Clarke, chairman and CEO of FLEETCOR. “Their focus on the airline industry is a great complement to our broader corporate travel emphasis.”

The acquisition of Travelliance will boost the size of FLEETCOR’s hotel network and bring solutions to different international markets.

“We are thrilled to join the FLEETCOR team. With FLEETCOR’s scale and resources, Travelliance can provide the full extent of services beyond our client’s expectations,” said Ted Scislowski, CEO of Travelliance. “As a technology leader in the industry, we can now further our technology innovations in ways previously unimaginable.”

FLEETCOR’s Q2 2019 earnings data released in August surpassed expectations, with an 11 percent year-over-year revenue increase to $647.1 million for the quarter compared to estimates of $634.18 million. Earnings per share (EPS) landed at $2.85, surpassing expectations for $2.80 per share. Clarke said that Q2 was “probably one of the best quarters in quite some time.”

FLEETCOR also recently closed two other acquisitions, Nvoicepay and SOLE Financial. The primary rationale behind the Nvoicepay acquisition was to strengthen the company’s position in full accounts payable (AP) or integrated payables.

Clarke said the company’s acquisition pipeline is “still active.” It has three close tuck-in opportunities, one of each in its fuel, lodging and corporate pay businesses. He also noted that the company has plenty of liquidity to pursue them.

FLEETCOR expects to book between 9 percent and 11 percent revenue growth for the rest of the year.