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Wright Express Acquires FleetSmart Program
South Portland, Maine - Wright Express is acquiring FleetSmart, a fleet card program targeted at the distributor market, in a deal scheduled to close on August 16, 2002. The acquisition will provide Wright Express LLC, the nation's leading provider of fleet charge cards, with a strategic fleet card entry into the important distributor marketplace, a significant portion of the nation's retail fueling industry. Targeting and developing that market enhances a critical component of the company's strategic growth plans and will supplement it's existing business with major/independent oils and fleet management companies.
"We are very excited about this acquisition," said Michael Dubyak, president and chief executive officer of Wright Express. "This provides us with a great product that we can make even more powerful and appealing by tapping our deep and long-standing fleet card experience and capitalizing on our position as the industry leader.
Unquestionably, the fuel distributor market is a key market that we have targeted for growth because of the enormous potential we see there. And FleetSmart provides us with the base product and the tools to greatly accelerate our growth in this particular area. We have built our company by developing strong, long-standing private label partnerships with 28 oil companies, 30 fleet management companies, and acceptance of our universal product at over 160,000 locations. We now look to do the same with petroleum distributors and independent marketers who know their local and regional fleet markets."
FleetSmart, a regional fleet card program that operated mainly in the South and Southwestern United States, provided both a private label and universal fleet card offering. Wright Express will rename the product from FleetSmart to FleetPro. A key part of the FleetSmart deal is the acquisition of a proprietary system that includes many product features preferred by the distributor market in providing fleet cards to their fleet customers. The FleetSmart system will provide Wright Express with a powerful platform on which to base its expansion into the distributor fleet card market.
Wright Express plans to take the FleetSmart program and enhance it's program by incorporating many of the features that is has successfully developed for its universal card and private label customers. In this way, Wright Express can offer everything from the base level program to a more comprehensive program based upon the needs of the customer.
"Our strategy seeks continued strong growth and the development of new markets," Dubyak said. "All our plans are designed to push that growth and maintain our position as the industry leader - from our major technology initiative that will help us create new products, to our acquisition of the FleetSmart program which will enhance our penetration into the smaller fleet market through distributors."
Wright Express plans to move aspects of the FleetSmart operation to both its South Portland, Maine headquarters and to its bank in Salt Lake City, Utah. Also as a result of the deal, Wright Express expects to add several jobs in the South Portland area. South Portland-based Wright Express is the leading provider of fleet charge cards to the fleet maintenance and fueling industry with its cards accepted at more than 160,000 locations. Wright Express also provides information management, payment processing, and financial services to fleets through card partnerships with oil companies and fleet management companies. Through its own universal fleet card program, its partners' card programs and its MasterCard program, Wright Express has nearly four million commercial cards in its markets. Wright Express LLC, a subsidiary of Cendant Corp., employs more than 640 people at its headquarters in South Portland, Maine and its subsidiary in Salt Lake City, Utah.
South Portland-based Wright Express is the leading provider of fleet charge cards to the fleet maintenance and fueling industry with its cards accepted at more than 160,000 locations. Wright Express also provides information management, payment processing, and financial services to fleets through card partnerships. Through its own universal fleet card program, its partnersÕ card programs and its MasterCard program, Wright Express has 3.8 million commercial cards in its markets. Wright Express LLC, a subsidiary of Cendant Corp., employs more than 640 people at its headquarters in South Portland, Maine and its subsidiary in Salt Lake City.
For more information, visit www.wrightexpress.com.
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