Fintech services provider WEX has agreed to acquire business-to-business (B2B) payments companies eNett and Optal for $1.7bn.
The deal covers around $1.275bn in cash and nearly two million shares of WEX common stock.
Go deeper with GlobalData
WEX is purchasing eNett from Travelport and its owners, Siris Capital Group affiliates and Elliot Management’s private equity affiliate, Evergreen Coast Capital. Optal is being acquired from private shareholders.
The acquisition complements WEX’s technology and products, boosting its travel offerings and geographic expansion. WEX also expects the deal to mitigate exposure to macro-economic fluctuations.
WEX chair and CEO Melissa Smith said: “The combination of WEX’s travel business with eNett and Optal further strengthens our leadership in the global travel marketplace.
“In particular, this transaction strengthens our position outside of the US, adds a unique but complementary product suite, and brings a talented team with expertise in operating in international markets.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataAccording to WEX, eNett and Optal have together recorded a compounded rate increase of 36% in purchase volume. The addition of these companies to WEX is anticipated to grow revenue and travel market opportunities worldwide.
WEX also said that the combined entity will have a greater footprint in the EMEA and APAC regions.
Board of directors at WEX have approved the deal, which is subject to customary closing conditions and regulatory approvals. It is scheduled to close in the coming months.
Following the completion of the transaction, eNett and Optal will be integrated with WEX. The acquisition is set to be accretive in the first twelve months to WEX’s adjusted net income EPS.
In last January, WEX acquired electronic payments firm Noventis to strengthen its network.
