SOUTH PORTLAND, Maine--(BUSINESS WIRE)--Jul. 1, 2016--
WEX
Inc. (NYSE: WEX), a leading provider of corporate payment solutions,
today completed its previously announced acquisition of Electronic Funds
Source LLC (“EFS”), a provider of customized corporate payment solutions
for fleet and corporate customers with a focus on the large and
mid-sized over-the-road (“OTR”) fleet segments. EFS is now a
wholly-owned subsidiary of WEX.
“We are very excited to announce the completion of this acquisition,
which we believe brings together two great companies with a portfolio of
best-in-class offerings and a complementary footprint,” said Melissa
Smith, WEX’s president and chief executive officer. “We look forward to
commencing the integration of EFS into WEX’s global network, combining
our strengths to improve the functionality and service we provide to
over-the-road customers and mixed fleets in North America while driving
further scale across the organization.”
EFS’ customer orientation and product portfolio aligns well with WEX.
The acquisition will enable the combined company to expand its presence
in the large and mid-sized OTR fleet segment while better serving the
needs of all fleets. EFS’ technology will enhance WEX’s platform by
expanding functionality in controls, permitting, fuel price analytics
and mobile account maintenance. In addition, EFS provides current WEX
customers with expanded Canadian acceptance.
EFS’ solutions will diversify WEX’s corporate payments product offering,
adding a variety of corporate card options including a single,
multi-purpose card. WEX is confident that the combined entity will be
better positioned to anticipate industry trends, innovate its offering
and provide tailored expertise and service to fleet and corporate
customers. The combination will also further diversify WEX’s earnings
and help to reduce WEX’s exposure to fuel price sensitivity.
WEX expects the transaction will be accretive to adjusted net income
over the next 12 months. However, given the timing of the close, the
Company does not expect the transaction will have a material impact on
previously issued guidance for the remainder of 2016. WEX plans to
provide details on deal synergies and accretion following the close of
the transaction when WEX reports its second quarter 2016 results.
WEX paid approximately $1.1 billion in cash and issued approximately 4.0
million shares of its common stock to investment funds affiliated with
Warburg Pincus, EFS’ former owner, as consideration for the acquisition
of EFS. As part of the transaction, WEX expects to realize
approximately $275 million in present value of tax benefits.
Additionally, Jim Neary, a managing director of Warburg Pincus and a
member of its executive management group, will join WEX’s Board of
Directors effective as of July 5, 2016.
About WEX Inc.
WEX Inc. (NYSE: WEX) is a leading provider of corporate payment
solutions. From its roots in fleet card payments beginning in 1983, WEX
has expanded the scope of its business into a multi-channel provider of
corporate payment solutions representing more than 10 million vehicles
and offering exceptional payment security and control across a wide
spectrum of business sectors. WEX serves a global set of customers and
partners through its operations around the world, with offices in the
United States, Australia, New Zealand, Brazil, the United Kingdom,
Italy, France, Germany, Norway, and Singapore. WEX and its subsidiaries
employ more than 2,500 associates. The Company has been publicly traded
since 2005, and is listed on the New York Stock Exchange under the
ticker symbol "WEX." For more information, visit www.wexinc.com
and follow WEX on Twitter at @WEXIncNews.
Forward-Looking Statements
This news release contains forward-looking statements, including
statements regarding: the acquisition, statements about updates relating
to future financial and operating results, the impact of the transaction
on the Company's adjusted net income, benefits and synergies of the
acquisition and any other statements about the Company or Electronic
Funds Source LLC managements' 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 new
release, the words "may," "could," "anticipate," "plan," "continue,"
"project," "intend," "estimate," "believe," "expect" 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: potential adverse reactions or changes to business or
employee relationships, including those resulting from the completion of
the acquisition; competitive responses to the proposed acquisition;
uncertainty of the expected financial performance of the combined
operations following completion of the acquisition; the ability to
successfully integrate the Company's and the Electronic Funds Source
LLC's operations and employees; the ability to realize anticipated
synergies and cost savings; unexpected costs, charges or expenses
resulting from the acquisition; as well as other risks and uncertainties
identified in Item 1A of our Annual Report for the year ended December
31, 2015, filed on Form 10-K with the Securities and Exchange Commission
on February 26, 2016. The Company's forward-looking statements do not
reflect the potential future impact of any alliance, merger,
acquisition, disposition or stock repurchases, other than the
acquisition. The forward-looking statements speak only as of the date of
this announcement and undue reliance should not be placed on these
statements. The Company disclaims any obligation to update any
forward-looking statements as a result of new information, future events
or otherwise.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160701005792/en/
Source: WEX Inc.
WEX
News media:
Robert Gould, 207-523-7429
robert.gould@wexinc.com
or
Investor
relations:
Steve Elder, 207-523-7769
Steve.Elder@wexinc.com