Business Payments Company FLEETCOR Considering Selling Prepaid Card Business

FLEETCOR Technologies is reportedly considering selling its prepaid card business.

The global business payments company is working with financial advisers on the potential sale of the unit, which could be valued at $500 million to $1 billion, Bloomberg Law reported Tuesday (May 30), citing unnamed sources.

A decision has not been made and the company could choose to retain the unit, according to the report.

FLEETCOR did not immediately reply to PYMNTS’ request for comment.

This report comes about two months after FLEETCOR announced a board refresh and a strategic review begun as part of a cooperation agreement with a longtime shareholder, the global investment and technology development firm D.E. Shaw.

The board refresh included adding Rahul Gupta, who is a board member and adviser to public and private FinTech companies, as well as another mutually agreed-upon director to replace one of FLEETCOR’s longer tenured directors.

The strategic review encompasses both the company’s portfolio and its business configuration with the aim of enhancing shareholder value, is expected to be completed by the end of the year and complements its current business simplification initiative.

Among the alternatives to be considered is separating one or more of FLEETCOR’s businesses, the company said when announcing these moves on March 20.

About a week later, FLEETCOR announced its appointment of payments industry veteran Tom Panther as chief financial officer (CFO).

Panther most recently served as CFO at EVO Payments before its acquisition by Global Payments. His role at EVO Payments included serving as an adviser to the board during the sale of the company.

In a May 17 blog post providing updates on these and other changes, FLEETCOR Executive Vice President of Corporate Development and Strategy Steve Greene said the strategic review is being done with assistance from Goldman Sachs.

“The portfolio review will assist the board as it considers various strategic alternatives, including the possible separation of one or more of our businesses,” Greene said in the post.

“We are completely aligned with the importance and urgency of enhancing shareholder value and will be providing further updates on the outcome of the strategic review over the coming months,” Greene added.