First Data (NYSE: FDC), a global leader in commerce-enabling technology, and FLEETCOR Technologies Inc. (NYSE: FLT), a leading global provider of commercial payment solutions, today announced that they have terminated the joint venture agreement they entered in March 2017.
That agreement would have combined the gift card businesses of both parties.
“While both companies believe the proposed joint venture would provide significant benefits to customers and other stakeholders, expected challenges in obtaining regulatory approval led to the mutual conclusion that termination is the best course of action,” said Frank Bisignano, chairman and chief executive officer of First Data. The expected benefits of the joint venture included offering expanded digital gift card distribution solutions. “We look forward to exploring partnership opportunities with FLEETCOR while also growing First Data’s Gift Solutions business,” Bisignano added.
“We’re going to explore some other ways to partner with First Data, while also revisiting our growth plans for an independent SVS,” said Ron Clarke, chairman and chief executive officer of FLEETCOR Technologies, Inc.
No termination fees will be payable by either company in connection with the termination of the joint venture agreement.