WEX completes acquisition of Electronic Funds Source
WEX Inc. (NYSE:WEX), a South Portland-based corporate payments company, announced Friday that it has completed its acquisition of Electronic Funds Source LLC, a fleet card provider, for $1.1 billion in cash plus 4 million shares of common stock.
Based on the current expectations for closing and financing rates, WEX reported that it expects the transaction will add to its adjusted net income over the next 12 months. However, given the timing of the close, WEX also reported that it does not expect the transaction will have a material impact on previously issued guidance for the remainder of 2016.
“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,” Melissa Smith, WEX’s president and CEO, said in a statement. “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.”
At the time the acquisition was first announced in October, WEX characterized Ogden, Utah-based EFS's strong track record and broad customer base in mid- and large-sized, over-the-road fleet segments as an "ideal complement" to its own fleet card offerings. Because the two companies have focused on different parts of the corporate payments sector, the deal would allow customers to benefit from a combined set of capabilities, the company said at that time, noting that for WEX customers, the acquisition would mean more of a variety of corporate card options, including a single, multi-purpose card.
Separately, the company announced in a filing with the U.S. Securities and Exchange Commission that it has increased the size of its board of directors from 10 to 11 by adding James Neary as a Class II director to serve an initial term ending at the annual shareholders’ meeting in 2019. Neary will also serve on the Compensation Committee. Neary is a managing director of Warburg Pincus and joined the firm in 2000. He has served as co-head of the Industrial & Business Services team since June 2013 and is also a member of the firm’s executive management group.
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