Payment processer Wright Express Corp. is planning to acquire an Australian firm for $318 million.
The South Portland-based company Friday announced it has entered into an agreement to purchase Retail Decisions, a fleet and prepaid card business in Australia, from private equity firm Palamon Capital Partners and co-investors Morgan Stanley Alternative Investment Partners and AlpInvest Partners, according to a press release. The transaction is expected to extend Wright Express’ international reach and diversify its revenue. ReD Fuel, a division of Retail Decisions, is Australia’s largest fuel card issuer with 270,000 cards in circulation, and division ReD Prepaid holds 60% of the country’s market share in prepaid cards, according to the release. The two businesses generated more than $56 million in 2009. Wright Express handles payment processing and data management for commercial and government vehicle fleets and had annual revenue in 2009 of nearly $320 million.
The deal is expected to close in the third quarter, pending regulatory approval.
