News

WEX acquires eNett and Optal for geo-expansion and consolidation

Monday 27 January 2020 10:24 CET | News

WEX has entered into an agreement to purchase eNett, a B2B payments solutions provider to the travel industry, and Optal, a B2B transactions optimization company, for a total consideration of approximately USD 1.7 billion.

WEX is acquiring eNett from Travelport and its owners, affiliates of Siris Capital Group and Elliot Management Corporation'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.

This acquisition further reduces WEX’s exposure to macro-economic fluctuations, while providing geographic diversification in its travel business, which aligns with our previously stated strategy. Through this combination, WEX will have greater presence in the EMEA and APAC regions.

Pursuant to the terms of the agreement, WEX will acquire eNett and Optal for approximately USD 1.275 billion in cash and approximately 2 million shares of common stock paid to the sellers. The cash portion of the transaction is being funded through a combination of cash on hand and new debt. The WEX common stock issued in connection with the transaction is valued at approximately USD 425 million, based on WEX’s volume-weighted average price over the past 30 trading days prior to signing.

The transaction, which has been unanimously approved by the WEX board of directors, is expected to be completed mid-year in 2020, subject to regulatory approvals and other customary closing conditions.


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Keywords: WEX, acquisition, eNett, Optal, B2B payments
Categories: Payments & Commerce | Online Payments
Countries: World
This article is part of category

Payments & Commerce