(Bloomberg) -- Fleetcor Technologies Inc., which offers fuel cards to vehicle fleets, is exploring a sale of its prepaid card business, according to people with knowledge of the matter.
The unit could be valued at about $500 million to $1 billion in a sale, the people said, asking not to be identified discussing private information. Fleetcor is working with financial advisers on the potential divestiture, the people said.
Deliberations are ongoing and Fleetcor could opt to retain the prepaid card business, they added.
Fleetcor fell 1.1% to $231.21 at 1:25 p.m. in New York trading Tuesday, giving the company a market value of about $17 billion.
A representative for Fleetcor didn’t respond to requests for comment.
Fleetcor announced plans including a review of its “portfolio and business configuration” in March after being pressured by long-term shareholder D.E. Shaw & Co.
“The portfolio review will assist the board as it considers various strategic alternatives, including but not limited to the possible separation of one or more of the company’s businesses,” Fleetcor said in a statement at the time. The review is slated to be complete by the end of this year, the company said.
As part of the settlement, the company also appointed Rahul Gupta, a former group president at Fiserv Inc., and another mutually agreed-upon director to the board.
The D.E. Shaw campaign came to light for the first time when the mutual agreement with Fleetcor was announced, an increasingly popular tactic by activist investors.
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