Acquisition Announcement: Group President Mark Frey Discusses Corporate Payments Plans by Corpay
In a significant move to expand its Corporate Payments business, Corpay, a corporate payments-focused company, has announced the acquisition of GPS Capital Markets for $725 million. The US-based provider of cross-border payments and treasury management solutions is the third largest acquisition completed by Corpay to-date.
The acquisition is set to provide a significant boost to Corpay's Corporate Payments division, which saw the strongest revenue growth for the company in recent years. GPS Capital Markets generates a significant portion of its revenue from cross-border payments, a capability that has the potential to be applied to the needs of both larger clients and Tier 2 and 3 banks.
GPS Capital Markets has an upper middle-market customer base, with 75% of customers based in the US. The company's balance sheet hedging capabilities are a key factor in Corpay's acquisition, with the integration of GPS’s B2B cross-border FX infrastructure enhancing Corpay’s ability to offer localized and sophisticated FX hedging solutions.
After acquiring GPS Capital Markets, Corpay’s key opportunities and priorities center on expanding netting opportunities, enhancing balance sheet hedging capabilities, and growing their Corporate Payments division.
The acquisition bolsters Corpay's ability to optimize payment flows for mid-market and enterprise clients by offsetting payables and receivables across currencies and counterparties. By improving netting, Corpay can reduce transaction volumes and associated costs, providing a more efficient treasury solution to corporate clients.
Integrating GPS’s B2B cross-border FX infrastructure also supports corporate treasurers in managing foreign exchange risk on their balance sheets with greater precision and scalability. This integration is expected to drive growth in Corpay's Corporate Payments division, especially for mid-market and enterprise customers.
The acquisition strengthens Corpay’s corporate payments offering, complementing recent acquisitions like Paymerang and Alpha Group. This expansion enables Corpay to deliver integrated payments and FX services across multiple verticals, increasing wallet share within corporate clients and opening new industry segments like education, healthcare, hospitality, and manufacturing.
Corpay's ongoing acquisition strategy includes integrating GPS Capital Markets with its Corporate Payments division and Paymerang. The company's broader strategic context includes cross-border payments revenue growing 20% year-over-year, driven in part by GPS integration, underpinned by Corpay's proprietary network competing effectively against banks.
The launch of Multi-Currency Accounts facilitating liquidity management across 12 currencies, supporting client cash flow optimization, and the enhanced cross-border payment infrastructure combined with Mastercard partnership accelerates Corpay’s market reach and solution capabilities, further feeding into corporate payments growth.
In summary, leveraging GPS’s capabilities allows Corpay to deepen netting and hedging services, thereby improving corporate treasury management, while aggressively scaling the Corporate Payments division to capture broader market share across cross-border and domestic verticals.
Mark Frey, Group President of Corpay Cross-Border Solutions, was consulted about the opportunities for the GPS acquisition and the priorities for building a post-acquisition strategy. The acquisition of GPS Capital Markets is motivated by the opportunity to expand its Corporate Payments business and marks a significant step forward in Corpay's growth strategy.
- The acquisition of GPS Capital Markets by Corpay is strategically significant, aiming to enhance the company's Corporate Payments division, particularly by leveraging GPS's capabilities for cross-border payments and balance sheet hedging.
- By integrating GPS Capital Markets' B2B cross-border FX infrastructure and expanding netting opportunities, Corpay expects to optimize payment flows for mid-market and enterprise clients, subsequently growing its Corporate Payments division.
