Edenred SE

M&A Activity • Sep 19, 2023

Edenred joins forces with PagBem to consolidate its leading position on the freight payment market in Brazil

Edenred, the leading provider of Mobility solutions in Latin America, today announces the signing of an agreement with PagBem whereby both companies will combine their Brazilian freight payment assets. Edenred will own around 70% of the merged activities, with the remainder owned by PagBem's current shareholders.

The combination of Edenred Repom and PagBem operations will strengthen Edenred's leading position on the Brazilian freight payment market. It marks a new step in the delivery of its Beyond22-25 strategic plan, further expanding its Beyond Fuel activities in Brazil.

The Brazilian freight payment market, which is estimated at more than €60 billion, is vastly underpenetrated. It covers the services outsourced and expenses paid by large carriers and shippers to independent truck drivers for the delivery of goods. In Brazil, the road transportation industry includes more than one million independent truckers. The electronic system run by specialized, ANTT1-approved companies, such as Edenred Repom and PagBem, formalizes the relationships of shippers and large carriers with independent truck drivers and carriers with less than three trucks. This system allows independent truckers to receive their wages and use prepaid cards or mobile payment to securely cover their expenses, including fuel, restaurants and tolls.

Edenred Repom draws on 30 years of industry expertise and is the leader in the Brazilian freight payment market. Through a dedicated platform centralizing freight payment, Edenred Repom offers a seamless experience for both shippers and carriers thanks to API2-enabled integration with the main TMSs ³. Edenred Repom's user-friendly mobile app allows truck drivers to control their trips from beginning to end, access a large network of 1,800 gas stations in Brazil and enjoy a panel of services such as bill payments, transfers, mobile recharge or access to a virtual assistant.

Founded in 2015, PagBem is the third largest player on the freight payment market in Brazil. Through a cloud-based platform, PagBem provides freight, toll and expense payment management solutions integrating all parties, from shippers and carriers to truckers. By allowing carriers and shippers to easily outsource and control goods deliveries, PagBem's platform provides greater efficiency, security and control. PagBem has grown rapidly since its inception and has more than doubled its revenue over the last three years.

The combination of Edenred Repom and PagBem operations will strengthen Edenred's marketleading offer and allow the company to further leverage scale on the market, serving more than 4,000 clients. Thanks to great complementarity between both platforms and operations, the deal will deliver significant synergies and increase Edenred's capacity to accelerate its penetration of the Brazilian freight payment market.

¹ Brazil's National Transportation Agency.

² Application Programming Interface.

³ Transportation Management Systems.

The transaction will be carried out without cash disbursement by Edenred and includes a mechanism for Edenred to reach a 100% stake.

Diane Coliche, Chief Operating Officer, Mobility at Edenred, said: "We are excited to announce Edenred Repom merger with PagBem and are looking forward to welcoming PagBem's teams. This operation consolidates our position as a leader on the freight payment market in Brazil while further strengthening our Beyond Fuel offering. The combination of our activities opens new opportunities that we are determined to seize."

Daniel Cypas, Co-founder and CEO of PagBem, said: "We are extremely proud to be joining forces with Edenred Repom. The integration of both companies will allow us to deliver an unmatched experience to our clients, from shippers and carriers to truckers."

The closing of the deal is subject to approval from the competent authorities, including CADE, the Brazilian competition authority. It is expected to be finalized in first-quarter 2024.

About Edenred

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Edenred is a leading digital platform for services and payments and the everyday companion for people at work, connecting 60 million users and 2 million partner merchants in 45 countries via close to 1 million corporate clients.

Edenred offers specific-purpose payment solutions for food (such as meal benefits), incentives (such as gift cards, employee engagement platforms), mobility (such as multi-energy, maintenance, toll, parking and commuter solutions) and corporate payments (such as virtual cards).

True to the Group's purpose, "Enrich connections. For good.", these solutions enhance users' well-being and purchasing power. They improve companies' attractiveness and efficiency, and vitalize the employment market and the local economy. They also foster access to healthier food, more environmentally friendly products and softer mobility.

Edenred's 12,000 employees are committed to making the world of work a connected ecosystem that is safer, more efficient and more responsible every day.

In 2022, thanks to its global technology assets, the Group managed some €38 billion in business volume, primarily carried out via mobile applications, online platforms and cards.

Edenred is listed on the Euronext Paris stock exchange and included in the following indices: CAC 40 ESG, CAC Large 60, Euronext 100, Euronext Tech Leaders, FTSE4Good and MSCI Europe.

The logos and other trademarks mentioned and featured in this press release are registered trademarks of Edenred S.E., its subsidiaries or third parties. They may not be used for commercial purposes without prior written consent from their owners.

CONTACTS

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Communications Department

Emmanuelle Châtelain +33 (0)1 86 67 24 36 emmanuelle.chatelain@edenred.com

Media Relations

Matthieu Santalucia +33 (0)1 86 67 22 63 matthieu.santalucia@edenred.com

Investor Relations

Cédric Appert +33 (0)1 86 67 24 99 cedric.appert@edenred.com

Baptiste Fournier +33 (0)1 86 67 20 73 baptiste.fournier@edenred.com