First Data, the commerce-enabling technology company and FLEETCOR Technologies, a global provider of fuel cards and workforce payment products to businesses, announced Monday (Mar. 6) the formation of a joint venture that will consolidate their various gift solutions with an aim of driving value for their clients.
In a press release, the companies said the joint venture combines the gift card businesses of both companies including First Data’s core gift card business, Transactions Wireless, and Gyft along with FLEETCOR’s Stored Value Solutions (SVS) prepaid card services and gift card program management assets.
“We are combining the strengths of both our businesses to give clients the most robust gift offering available,” said Frank Bisignano, First Data chairman and CEO, in the press release. “The joint venture will focus on expanding gift card distribution solutions and bringing new value to clients in a competitive and rapidly growing marketplace.”
The combined revenue of the businesses that are to be contributed to the joint venture by both companies was $362 million in 2016, noted the companies in the release. First Data will own 57.5 percent of the joint venture, and FLEETCOR will own 42.5 percent.
“We are delighted to enter into this agreement with First Data. By combining our SVS business with First Data’s businesses, we will be able to serve our clients in a more integrated and more comprehensive fashion,” said Ron Clarke, FLEETCOR Technologies Inc. chairman and CEO, in the same release. In addition to helping issuers manage their prepaid programs, the companies said the joint venture will help clients acquire new customers, reward existing ones, distribute the merchant’s cards digitally, lower the risk of fraud and reduce the total cost of payment acceptance.