FleetCor Technologies, a provider of fuel cards and workforce payment services, has signed an agreement to purchase electronic payment services provider Comdata for $3.45 billion.

According to FleetCor, the acquisition of the Tennessee-based Comdata is expected to provide a number of benefits such as expanding FleetCor’s North American fuel card business into new, unserved markets; enabling entry into the virtual payments business; and dramatically increasing FleetCor’s overall scale and earnings base.

“We have followed Comdata’s growth and development for many years, and are excited today to be bringing the companies together” said Ron Clarke, chairman and chief executive officer of the Georgia –based FleetCor Technologies. “Comdata’s virtual payments business will add a completely new growth leg to FleetCor. We believe that the combination will result in significant synergies as we implement our operating disciplines to their portfolio of businesses.”

The deal is expected to close by the end of the year.