Corpay's Strategic Acquisition of Gringo: A Game Changer in Brazilian Mobile Payments

Corpay, Inc. (NYSE: CPAY), a global S&P 500 corporate payments company, has announced its plans to acquire Gringo, a leading vehicle registration and compliance payment company in Brazil. This strategic move is set to triple Corpay's total addressable market (TAM) and accelerate its revenue growth. The acquisition is expected to close near the end of the first quarter of 2025, subject to regulatory approval.

Gringo, a super app for car drivers, makes life easier for millions of drivers in Brazil by helping them pay for vehicle taxes, registration, and fines instantly through its digital app and national network. The company is growing its revenue at an impressive rate of over 30% annually. Ron Clarke, chairman and chief executive officer of Corpay, Inc., expressed his enthusiasm about the acquisition, stating that it is the second deal in the 'car debts' category for Corpay.

The acquisition of Gringo aligns with Corpay's long-term growth strategy in several ways. First, the car debts addressable segment is approximately three times larger than tolls and significantly less penetrated, providing an enormous runway for growth. Second, Corpay expects its new car debts segment (including previously acquired Zapay) to increase Brazil's overall organic revenue growth rate by three percentage points this year, making it a meaningful contributor to future growth. Lastly, Corpay plans to offer its full suite of vehicle payment products, including tolls, fuel, parking, and insurance, to Gringo's 2.5 million monthly active users, generating significant synergies from integrating it within its Brazil business.