FLEETCOR Begins Board Refresh and Strategic Review – PYMNTS.com

FLEETCOR has announced a board refresh and a strategic review.
The global business payments company has made these changes as part of a cooperation agreement with a longtime shareholder, the global investment and technology development firm D.E. Shaw, FLEETCOR said in a Monday (March 20) press release.
The board refresh includes adding Rahul Gupta, who is a board member and adviser to public and private FinTech companies, as well as another mutually agreed-upon director. When the second new director is appointed, one of FLEETCOR’s longer tenured directors will retire, according to the press release.
“We are pleased to appoint Rahul Gupta to our board, and welcome new perspectives that will help shape our path forward,” FLEETCOR Chairman and CEO Ron Clarke said in the release.
The strategic review that is also part of the agreement will encompass both the company’s portfolio and its business configuration with the aim of enhancing shareholder value. Among the alternatives to be considered is separating one or more of FLEETCOR’s businesses, according to the release.
The company said in the release that it intends to complete the review by the end of the year, that it will have no further comment upon the review until it is completed and that the review complements its current business simplification initiative.
“We appreciate our constructive engagement with Ron and the FLEETCOR board, along with the addition of Rahul Gupta to the board,” Michael O’Mary, managing director at D.E. Shaw, said in the release. “We are pleased that the company will explore portfolio alternatives to highlight the strength of each of its underlying businesses with the goal of unlocking substantial value for all shareholders.”
In FLEETCOR’s most recent earnings release, the company said it expects to deliver its targeted organic revenue growth of 9% to 11% in 2023.
“We are working to manage expenses carefully and expect margins to improve throughout the year as higher revenues generate operating leverage and we realize synergies from recent acquisitions,” FLEETCOR Interim Chief Financial Officer Alissa Vickery said in the Feb. 8 release.
Among the company’s recent acquisitions are cloud-based electric vehicle charging software platform Mina and European workforce lodging provider Roomex.
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