Corpay (CPAY, Financials), a corporate payments company, signed a definitive agreement to acquire Gringo, a Brazil-based mobile platform specializing in vehicle registration and compliance payments.
The purchase increases Corpay's profile in the Brazilian market and should help the business generate more income.
Operating a web platform, Gringo lets Brazilian drivers pay penalties, registration fees, and vehicle-related taxes. Serving 2.5 million monthly active users, the firm reports an annual revenue growth rate of over 30%.
Ron Clarke, Corpay CEO, said the purchase fits the company's larger goal of increasing its product line in the car payments market. Clarke pointed out that there is great growth potential in the "car debts" section, which consists of payments linked to vehicles, as toll payments are much more penetrated than this section.
The deal follows Corpay's past acquisition of Zapay, another Brazilian company engaged in automobile payments. According to Clarke, Corpay's organic income growth in Brazil is predicted to rise by three percentage points in 2025 from its entry into the industry.
Offering a portfolio of car payment options, including tolls, gasoline, parking, and insurance, Corpay intends to integrate Gringo into its current operations. The purchase will provide expected cost efficiencies and income gains for the organization.
Expected to conclude at the end of the first quarter of 2025, the agreement is under regulatory review.
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