U.S. FleetCor Technologies, which provides special payment services for businesses, announced a $1.05 billion deal on Tuesday to buy the Brazilian electronic toll payments company Servicos e Tecnologia of Pagamentos (STP). FleetCor, known for fuel cards and other special-payment products and services, will pay for the STP transaction with a combination of cash and debt, the company said in a statement.
The deal is expected to close in the third quarter of this year. FleetCor estimated the price of the purchase, denominated in Brazilian currency, to amount to around 4.2 billion reals ($1.05 billion).
The purchase of STP, which operates under the brand Sem Parar in Brazil, will boost FleetCor's share prices by 10 to 13 cents per share in 2016, the U.S. firm predicted.