FLEETCOR Starts Board Refresh And Strategic Review

FLEETCOR has said that it will be getting a new board and doing a strategic review.

FLEETCOR said in a press release on Monday, March 20, that the global business payments company made these changes as part of a deal with a longtime shareholder, the global investment and technology development firm D.E. Shaw, to work together.

Rahul Gupta is a board member and advisor to both public and private FinTech companies. He will be added to the board, along with another director that everyone agrees on. A press release says that when the second new director is chosen, one of FLEETCOR’s directors who has been there the longest will step down.

Ron Clarke, Chairman and CEO of FLEETCOR, said in the release, “We are happy to add Rahul Gupta to our board and welcome new ideas that will help shape our path forward.”

The strategic review, which is also part of the agreement, will look at both the company’s portfolio and how its businesses are set up. The goal of this review is to increase the value of the company’s shares. The release says that separating one or more of FLEETCOR’s businesses is one of the options that will be looked at.

In a press release, the company said that it plans to finish the review by the end of the year, that it won’t say anything else about the review until it’s done, and that the review fits in with its current plan to make business easier.

“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 its most recent earnings report, FLEETCOR said it expects to reach its goal of 9% to 11% organic revenue growth 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.

The company has recently bought the cloud-based software platform Mina for charging electric vehicles and the European lodging provider Roomex.