Leader in Fleet Payment Processing and Information Management
Services Acquires Largest U.S. Franchisee Network of Cardlock Fueling
Providers
SOUTH PORTLAND, Maine--(BUSINESS WIRE)--March 3, 2008--Wright
Express Corporation (NYSE: WXS) today announced that it has completed
the previously announced acquisition of certain assets of privately
held Pacific Pride Services, Inc. With a total value of approximately
$32 million, the transaction was financed through the Company's
existing credit facility.
Pacific Pride's franchise network encompasses more than 330
independent fuel franchisees who issue their own Pacific Pride
commercial fueling cards to fleet customers. These cards provide
access to fuel at more than 1,000 Pacific Pride and strategic partner
locations in the U.S. and Canada. Named last month by The Wall Street
Journal as one of the nation's top 25 "Franchise High Performers,"
Pacific Pride delivers a broad range of support services to
franchisees.
The Pacific Pride network of franchisee fueling sites processes
approximately 32 million fleet card transactions annually and
generates approximately 80% of its revenue from transaction fees.
Wright Express expects the acquisition to be accretive to non-GAAP
earnings in the first 12 months of combined operations and to have no
impact on the Company's margins.
"Pacific Pride offers compelling benefits to distributors and the
fleets they serve, making it an outstanding strategic addition to our
core business," said Wright Express President and Chief Executive
Officer Michael Dubyak. "In addition, the distributors in Pacific
Pride's franchise network represent a cross-selling opportunity for
our new TelaPoint business. With products from both TelaPoint and
Pacific Pride, we can provide fuel distributors with a comprehensive
solution that spans everything from management of fuel inventory at
their bulk and retail sites to payment processing and purchasing
controls for their fleet customers. Adding these new dimensions to the
Wright Express value proposition should accelerate our strategic
distributor initiatives and our growth in the small-fleet market."
About Wright Express
Wright Express is a leading provider of payment processing and
information management services to the U.S. commercial and government
vehicle fleet industry. Wright Express provides these services for
approximately 300,000 commercial and government fleets containing 4.5
million vehicles. The Company markets its payment processing services
directly and is an outsourcing provider for more than 125 strategic
relationships, and offers a MasterCard-branded corporate card. The
Company employs more than 675 people and maintains its headquarters in
South Portland, Maine. For more information about Wright Express,
please visit wrightexpress.com.
This press release contains forward-looking statements, including
statements regarding: expectations concerning the accretive nature of
the acquisition and its impact on our margins; and beliefs with
respect to the strategic fit of Pacific Pride Services, Inc.; and the
benefits that will accrue to the Company from this acquisition. These
forward-looking statements include a number of risks and uncertainties
that could cause actual results to differ materially. These risks and
uncertainties include: achievement of the expected benefits of the
acquisition of Pacific Pride Services, Inc.; volatility in fuel
prices; first-quarter and full-year 2008 fueling patterns; the effect
of the Company's fuel-price-related derivative instruments; effects of
competition; the potential loss of key strategic relationships;
decreased demand for fuel and other vehicle products and services and
the effects of general economic conditions on the commercial activity
of fleets; the Company's ability to rapidly implement new technology
and systems; potential corporate transactions including alliances,
mergers, acquisitions and divestitures; changes in interest rates and
the other risks and uncertainties included from time to time in the
Company's filings with the Securities and Exchange Commission,
including the annual report on Form 10-K filed on February 28, 2008,
and the Company's other periodic and current reports. Wright Express
Corporation undertakes no obligation to update these forward-looking
statements at any future date or dates.
CONTACT: News media contact:
Wright Express:
Jessica Roy, 207-523-6763:
Jessica_Roy@wrightexpress.com:
or:
Investor contact::
Wright Express:
Steve Elder, 207-523-7769:
Steve_Elder@wrightexpress.com:
:
SOURCE: Wright Express Corporation