Fidelity National Financial Inc. (NYSE:FNF) Merges With Fleetcor For $3.45 Billion


Dallas, Texas 08/21/2014 (FINANCIALSTRENDS) – Fidelity National Financial Inc. (NYSE:FNF) in an announcement, noted the merger with FleetCor services for $3.45 billion. It was noted that Ceridian LLC had agreed to the sale of Comdata Inc to FleetCor technologies Inc. (NYSE:FLT) for a total cost of $3.45 billion.

However, much of the funds will be used to repay debt, as well as certain expenses which were part of transactions. The final amount which Ceridian LLC will receive is $950 million and will be paid in the form of FleetCor common stock.

Fidelity National Financial Inc. (NYSE:FNF) currently holds 32% stock in Ceridian LLC. As part of the transactions, nearly $250 million in common stock of FleetCor, which will be placed as Escrow. This amount will now cover the indemnity claims as part of the merger process.

The shares which are to be held in escrow will be released over a period of 3-years.

It was further noted that, as part of the merger a part of the stock proceedings, totally 7.3 million shares will be provided to Ceridian LLC. Besides, FNFV which also holds about 2.3 million shares of FleetCor common stock, to the tune of $300 million, will be part of the closing stock price as of $131.54 on August 11.

Fidelity National Financial Inc. (NYSE:FNF) noted that the transaction will be possible only after standard regulatory conditions were met. This includes the requirement of HSR approval, besides government approval with relation to Comdata’s money transmitter license business. ‘

As Chairman of FNF noted, ‘”The sale represents a multiple of over 12 times trailing twelve-month EBITDA for Comdata and brings FNFV an attractive investment in the common stock of FleetCor.”