Corpay, Inc. entered into a definitive agreement on February 4, 2026 to sell its PayByPhone mobile parking payments business to private‑equity firm Lightyear Capital. The transaction will see PayByPhone become an independent, stand‑alone company under Lightyear’s ownership, with the deal expected to close in the second quarter of 2026 pending regulatory approvals.
PayByPhone currently serves more than 1,300 cities and parking operators worldwide, providing a platform that enables drivers to pay for parking via mobile devices. The divestiture removes a lower‑margin, legacy unit from Corpay’s portfolio and allows the company to concentrate its resources on its higher‑margin corporate payments segment, which has been growing at double‑digit rates year over year.
Corpay’s CEO, Ron Clarke, stated that the sale would not materially impact the company’s 2026 cash earnings‑per‑share outlook. The divestiture is part of a broader strategy to “remix” the business toward higher‑growth corporate payments assets, following a July 2025 sale of a legacy fuel‑card portfolio that was expected to free up capital for future acquisitions.
The transaction aligns with Corpay’s recent earnings narrative, in which the company reported a 10% revenue increase to $1.034 billion in Q4 2024 and a 1% decline in diluted EPS to $3.44. Management highlighted that the corporate payments business is the primary driver of future revenue and margin expansion, and the divestiture is intended to sharpen focus on that core growth engine.
While the deal value was not disclosed, the strategic rationale is clear: by shedding a lower‑margin unit, Corpay can deploy capital toward acquisitions and investments that support its high‑margin corporate payments platform, reinforcing its competitive position in the fintech space. The move is expected to be viewed positively by investors who prioritize execution on core business growth and capital efficiency.
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