WEX announces two acquisitions totaling $1.7B

File Photo / Tim Greenway Melissa Smith

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By Staff

WEX Inc. (NYSE: WEX), the Portland-based financial technology service provider, said today it plans to make two acquisitions worth a total of $1.7 billion.

The company has entered into a definitive agreement to buy Singapore-based eNett, a provider of business-to-business payment solutions in the travel industry, and Melbourne, Australia-based Optal, which also specializes in B2B transactions.

The deals will include payment of $1.275 billion in cash and about 2 million shares of WEX common stock.

The deal for eNett was from seller Travelport and its owners, affiliates of Siris Capital Group and and Elliot Management Corp.’s private equity affiliate, Evergreen Coast Capital Corp. WEX is acquiring Optal from private shareholders.

The two companies will be fully integrated under WEX’s ownership.

“The combination of WEX’s travel business with eNett and Optal further strengthens our leadership in the global travel marketplace,” said WEX CEO Melissa Smith. "In particular, this transaction strengthens our position outside of the U.S., adds a unique but complementary product suite, and brings a talented team with expertise in operating in international markets.

"We are confident this transaction will enable us to accelerate our growth by deepening and expanding our position in the global travel market, broadening our product offerings to more fully address the needs of our travel customers, and diversifying our business geographically while reducing our exposure to macro-economic factors."

Anthony Hynes, managing director and CEO of eNett, commented: "We are pleased to be joining forces with WEX to offer leading travel companies globally an enhanced and unrivaled suite of innovative payments solutions. We look forward to working with the WEX team to successfully integrate our complementary assets, including our technology, products, and most importantly, our people.”

Robert Bishop, managing director and CEO of Optal, 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.”

WEX said the deal will accelerate WEX’s global growth strategy, extend its leadership in the large and growing global travel market, further diversify its business, strengthen its tech and product portfolio and enhance its strong financial profile.

In late morning trading, shares of WEX were up 4.16%, or $9.25, trading at $231.64.

The transaction, which has been unanimously approved by the WEX board of directors, is expected to be completed by mid-year, subject to regulatory approvals and other customary closing conditions.

BofA Securities and Grant Samuel are acting as financial advisors and Clifford Chance and Wilmer Cutler Pickering Hale and Dorr LLP are acting as legal advisors to WEX.

Credit Suisse Securities (USA) LLC and LionTree Advisors are serving as financial advisors, and Wachtell, Lipton, Rosen & Katz is serving as legal counsel, to eNett.

Herbert Smith Freehills is acting as legal advisors and Financial Technology Partners acted as advisors to Optal.