Real-estate and travel-services giant Cendant Corp. is exploring a possible sale of its Wright Express in a deal that may be worth more than $1.2 billion, The Post has learned.
New York-based Cendant, whose businesses range from Avis car rental to Coldwell Banker, has said publicly it would spin off the auto-fleet charge-card business in an initial public offering.
Privately, though, the company has been soliciting interest from a handful of corporate buyers and private-equity firms, according to people familiar with the situation.
Potential suitors include First Data Systems, Fiserv and Fidelity National Financial as well as investment firms Boston-based Bain Capital and GTCR Golder Rauner of Chicago.
Bain is hoping to gain a competitive edge in the auction by teaming with FleetCor Technologies, Inc., a portfolio company of Summit Partners, on a joint bid, sources said.
Bids for the unit – which provides payment processing and information management services for commercial and government automobile fleets – are expected to range between $1.2 billion and $1.4 billion. J.P. Morgan is handling the process for Cendant.
A Cendant spokesman was unavailable for comment.
Last November, Cendant said it would sell shares of Wright Express to the public as part of the company’s efforts to shed non-core assets and focus solely on its travel and real estate businesses, which include Century 21, Days Inn hotel chain and Budget car-rental chains.
As part of that strategy, Cendant sold shares of its tax-services arm, Jackson Hewitt Tax Service Inc., last June in an initial public offering that raised $770 million.
It also plans to spin off its mortgage and fleet business PHH Corp., and sell its marketing services division in an auction to be kicked off next month.
Meanwhile, the company has gone on a buying spree, snapping up travel concerns, including Orbitz Inc. and eBookers PLC. Proceeds from the Wright transaction and other sales will go toward funding the acquisitions.