SOUTH PORTLAND, Maine--(BUSINESS WIRE)--WEX Inc. (NYSE: WEX), a leading provider of corporate payment solutions, today completed its previously announced acquisition of Electronic Funds Source LLC, a provider of customized corporate payment solutions for fleet and corporate customers with a focus on the large and mid-sized over-the-road 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, visitwww.wexinc.com and follow WEX on Twitter at @WEXIncNews.
