C.H. Robinson Worldwide (CHRW.O) said it would sell its payment processing business unit, T-Chek, to privately held peer Electronic Funds Source LLC for $302.5 million to help fund its planned purchase of freight forwarder Phoenix International.
"We need some cash to complete the Phoenix transaction, which we expect to close sometime around November 1 but definitely during the fourth quarter," Chad Lindbloom, chief financial officer said in a conference call.
Robinson, a freight transport company, is buying privately owned Phoenix International for $635 million to gain a strong footing in the freight forwarding business.
"As the payment services industry continues to consolidate and evolve, scale and alignment with the financial services sector are becoming increasingly important", C.H. Robinson Chief Executive John Wiehoff said in a statement announcing the sale of T-Chek.
C.H. Robinson's shares closed at $60.90 on the Nasdaq on Tuesday.
(Reporting by Mridhula Raghavan in Bangalore; Editing by Rodney Joyce)