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WEX Signs Definitive Agreement to Acquire eNett and Optal
- Aligns with WEX’s global growth strategy by extending the Company’s leadership position in the attractive Travel market
- Accelerates WEX’s revenue growth and is accretive to adjusted net income EPS in the first 12 months
- Provides significant global geographic diversification while reducing WEX’s exposure to macro-economic fluctuations
- Complements WEX’s technology and product portfolio, extending our suite of global travel offerings
"The combination of WEX’s travel business with eNett and Optal further strengthens our leadership in the global travel marketplace,” said
“As a combined company, we will be uniquely positioned to address the most complicated payment challenges of travel companies across the globe. We are excited about the future and look forward to the opportunity to reach a broader set of customers,” said
- Accelerates WEX’s global growth strategy. Since 2016, eNett and Optal have grown purchase volume at a compounded rate of 36% on a combined basis, which will further strengthen WEX’s travel growth engine. We anticipate the combined business will grow revenue at the long term segment targets of 10%-15% communicated at our investor day.
- Extends WEX’s leadership in the large and growing global travel market. The combined enterprise will be well positioned to capture volume in the global travel market, and specifically the online travel market which is expected to grow bookings at approximately 9% per year through 2023, according to Phocuswright. This represents twice the rate of growth compared to the overall travel market.
- Further diversifies WEX’s business. This acquisition further reduces WEX’s exposure to macro-economic fluctuations, while providing geographic diversification in its travel business, which aligns with our previously stated strategy. Through this combination, WEX will have greater presence in the EMEA and APAC regions.
- Strengthens WEX’s technology and product portfolio. An unrivalled combination of complementary assets and suite of payment offerings from WEX, eNett, and Optal for travel customers globally. This includes a redundant and geographically-dispersed technology platform to further support customers.
Enhances WEX’s strong financial profile. The acquisition is expected to be accretive in the first twelve months to WEX’s adjusted net income EPS, with expected run rate synergies of
$25 millionwithin 24 months following the closing of the transaction, excluding the costs to achieve the synergies.
Pursuant to the terms of the agreement, WEX will acquire eNett and Optal for total consideration of approximately
The transaction, which has been unanimously approved by the WEX board of directors, is expected to be completed mid year in 2020, subject to regulatory approvals and other customary closing conditions.
Conference Call Details
In conjunction with this announcement, WEX will host a conference call today,
Forward Looking Statement Disclaimer
This press release contains forward-looking statements, including statements regarding: the proposed acquisition; the financial impact of the acquisition; the anticipated benefits and synergies of the acquisition; the timing of any potential completion; future opportunities for the combined operations and any other statements about WEX’s, Optal’s or eNett’s future expectations, beliefs, goals, plans, or prospects. Any statements that are not statements of historical facts may be deemed to be forward-looking statements. When used in this press release, the words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “project” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such words. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially, including: the effects of general economic conditions on fueling patterns as well as payment and transaction processing activity; the impact of foreign currency exchange rates on the Company’s operations, revenue and income; changes in interest rates; the impact of fluctuations in fuel prices; the effects of the Company’s business expansion and acquisition efforts; potential adverse changes to business or employee relationships, including those resulting from the completion of an acquisition; competitive responses to any acquisitions; uncertainty of the expected financial performance of the combined operations following completion of an acquisition; the failure to successfully integrate the Company's acquisitions; the ability to realize anticipated synergies and cost savings; unexpected costs, charges or expenses resulting from an acquisition; the Company's ability to successfully acquire, integrate, operate and expand commercial fuel card programs; the failure of corporate investments to result in anticipated strategic value; the impact and size of credit losses; the impact of changes to the Company's credit standards; breaches of the Company’s technology systems or those of the Company's third-party service providers and any resulting negative impact on the Company's reputation, liabilities or relationships with customers or merchants; the Company’s failure to maintain or renew key commercial agreements; failure to expand the Company’s technological capabilities and service offerings as rapidly as the Company’s competitors; failure to successfully implement the Company's information technology strategies and capabilities in connection with its technology outsourcing and insourcing arrangements and any resulting cost associated with that failure; the actions of regulatory bodies, including banking and securities regulators, or possible changes in banking or financial regulations impacting the Company’s industrial bank, the Company as the corporate parent or other subsidiaries or affiliates; the impact of the material weaknesses first disclosed in Item 9A of the Company's Annual Report for the year ended
Powered by the belief that complex payment systems can be made simple, WEX (NYSE: WEX) is a leading financial technology service provider across a wide spectrum of sectors, including fleet, travel and healthcare. WEX operates in more than 10 countries and in more than 20 currencies through approximately 4,900 associates around the world. WEX fleet cards offer approximately 14 million vehicles exceptional payment security and control; our travel and corporate solutions business processes over