In this episode of Smarter Payments by Corpay, host Brennan Robison, Director of Corporate Communications, speaks with Steve Greene, Executive Vice President of Corporate Development and Strategy at Corpay. The conversation centers on Corpay’s growth strategy, driven by mergers and acquisitions (M&A), and the company’s plans for 2025.

Key Highlights:

Corpay’s Growth and M&A Legacy:
Over its 20+ years, Corpay has grown from a regional fuel card provider into a global B2B payments giant, fueled by over 100 acquisitions. The company aims for a balance between organic growth (targeting 10% annually) and strategic acquisitions, supported by its strong free cash flow.

M&A Focus Areas:

• The priority is acquiring corporate payments businesses, especially domestic payables and cross-border payment companies.
• Diversifying the vehicle payments segment beyond fuel cards into areas like electric vehicle services and automotive registrations.
• Moving back to "wheelhouse deals" post-COVID, focusing on larger acquisitions with meaningful earnings contributions.

Notable 2024 Transactions:

• Acquisitions of Paymerang (domestic payables) and GPS (cross-border payments) deployed over $1 billion in capital. Combined, these are expected to contribute hundreds of millions in revenue in 2025.
• A strategic divestiture of non-core assets also marked a shift towards portfolio optimization.

Acquisition Strategy:

• Corpay builds relationships with potential targets years in advance, often entering commercial partnerships to assess compatibility.
• Key factors in acquisition decisions include synergy potential (cost and sales efficiencies) and alignment with Corpay’s growth objectives.
• Most transactions are structured as all-cash deals, simplifying the process and appealing to sellers.

2025 Outlook and Market Trends:
Greene is optimistic about Corpay’s M&A prospects in 2025, citing a favorable macroeconomic environment and expected reductions in interest rates. The company plans to replicate the success of 2024 by targeting sizable corporate payments acquisitions and refining its portfolio further.

Retaining Seller Legacy:
Corpay’s decentralized model allows acquired companies to maintain a degree of autonomy, preserving their culture and leadership. This approach appeals to founder-led businesses, aligning with their desire for a long-term home for their operations and employees.

The episode concludes with Greene’s confidence in Corpay’s future growth and its ability to execute impactful acquisitions while fostering a collaborative and enduring legacy.