FleetCor Technologies Operating Company, LLC - a subsidiary of
FleetCor Technologies, Inc.
) - has entered into an agreement to buy the Telenav enterprise
business unit from
). The company will pay the purchase consideration of $10 million
FleetCor and Telenav expect the deal to close in 30 days, near
the end of the fiscal third quarter of Telenav. As a
result, the financial results of the quarter will be relatively
unaffected by the deal. However, the company expects the revenues
for fiscal 2013 to be affected by the sale. As a result, the
company announced a revenue guidance of $190-$194 million for
Meanwhile, FleetCor did not reveal the expected impact of the
acquisition on its financial results. Further, the two companies
did not divulge other details of the agreement.
Telenav's enterprise business is designed to provide
operational management support to clients. Its location-based
services (LBS) platform helps clients track the status and
position of mobile personnel, automobiles and assets operating in
Telenav will assist the smooth transition of the business to
FleetCor by continuing to provide some services after the closure
of the deal. Telenav decided to divest the enterprise business as
it was not aligned with its other businesses. Consequently, the
company's focus was being deviated from the consumer, advertising
and automotive businesses, which are fast growing areas.
FleetCor currently carries a Zacks Rank #2 (Buy), while
Telenav carries a Zacks Rank #3 (Hold). Other companies worth
considering in the financial sector are
Euronet Worldwide Inc.
Grupo Financiero Banorte, S.A.B. de C.V.
). Both these companies carry a Zacks Rank #1 (Strong Buy).
EURONET WORLDWD (EEFT): Free Stock Analysis
FLEETCOR TECH (FLT): Free Stock Analysis
GRUPO FIN BANOR (GBOOY): Get Free Report
TELENAV INC (TNAV): Free Stock Analysis
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