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8-K - FORM 8-K - WEX Inc. | b81942e8vk.htm |
EX-10.1 - EX-10.1 - WEX Inc. | b81942exv10w1.htm |
Exhibit 99.1
News media contact:
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Investor contact: | |||
Jessica Roy
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Steve Elder | |||
Wright Express
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Wright Express | |||
207.523.6763
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207.523.7769 | |||
Jessica_Roy@wrightexpress.com
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Steve_Elder@wrightexpress.com |
Wright Express to Acquire Market Leading Australian Fleet and Pre-Paid Card Provider
Transaction Expands International Footprint, Diversifies Revenue, and Provides
Immediate Earnings Accretion
Immediate Earnings Accretion
SOUTH PORTLAND, MAINE July 30, 2010 Wright Express Corporation (NYSE: WXS), a
leading provider of payment processing and information management services to the U.S. commercial
and government fleet industry, today announced that it has entered into a definitive share purchase
agreement to acquire the Australian assets of Retail Decisions consisting of its fleet and prepaid
card businesses from Palamon Capital Partners, a private equity firm, and its co-investors Morgan
Stanley Alternative Investment Partners and AlpInvest Partners for approximately AU$353 million in cash
(approximately US$318 million). The all cash transaction is anticipated to be immediately
accretive to the Companys adjusted net income (which is a non-GAAP measure) and is expected to close in the third
quarter, subject to regulatory approval.
This transaction consists of two highly profitable and well-run businesses, each of which is a
leader in its respective markets within Australia:
| ReD Fuel is Australias largest multi-branded fuel card issuer with 270,000 cards in circulation. Their fleet cards are accepted at approximately 90% of Australian fuel retailers. | ||
| ReD Prepaid is the market leading processor of prepaid cards in Australia with approximately 60 percent market share. |
For 2009, these businesses generated revenues totaling AU$61.4 million combined.
This transaction is another step in advancing our international strategy, said Michael Dubyak,
chairman and chief executive officer of Wright Express. ReD Fuel and Prepaid provide us with
international revenue diversification in an established, but growing market with an opportunity to
further service an estimated nine hundred thousand small fleet vehicles in Australia currently
without fuel cards. ReD Fuel will allow us to go to market with full service capabilities in
Australia including private label, co-brand, and universal card programs, similar to our North
American strategy. In addition to our processing capabilities, we will now be able to provide
fully operational services to oil companies in Australia and New Zealand.
Importantly, ReD Prepaids card business enhances our diversification strategy and provides
us a new platform for growth outside of our fleet card business. This
complements our successful efforts to diversify the Companys revenues to reduce fuel-price
sensitivity, led by our MasterCard business, Dubyak said.
BofA Merrill Lynch acted as financial advisor to Wright Express while WilmerHale and
Mallesons Stephen Jaques provided legal counsel.
Conference Call Details
Wright Express will host a conference call today, July 30, 2010, at 9:00 a.m. (ET) to discuss the
Companys ReD Australia acquisitions. A live webcast of this conference call will be available at
the Investor Relations section of the Companys website (www.wrightexpress.com). The live
conference call also can be accessed by dialing (866) 334-7066
or (973) 935-8463. A replay of the
webcast will be available on the Companys website for approximately one year.
For your
convenience, the conference call can be replayed in its entirety beginning
from two hours after the end of the call through August 6, 2010. If you wish to listen to
the replay of this conference call, please dial (706) 645-9291 and enter passcode 91703745.
About
ReD Australia
ReD Australia is a leading Australian provider of payment processing, prepaid and information
management services. ReD Australia captures and combines transaction information from its
proprietary network with specialized analytical tools and purchasing control capabilities in a
suite of solutions that enable fleets and prepaid customers to manage their businesses more
effectively.
About Wright Express
Wright Express is a leading global provider of payment processing and information management
services. Wright Express captures and combines transaction information from its proprietary network
with specialized analytical tools and purchasing control capabilities in a suite of solutions that
enable fleets to manage their vehicles more effectively. The Companys charge cards are used by
commercial and government fleets to purchase fuel and maintenance services for approximately 4.6
million vehicles. Wright Express markets its services directly to fleets and as an outsourcing
partner for its strategic relationships and franchisees. The Companys business portfolio includes
a MasterCard-branded corporate card as well as TelaPoint, a provider of supply chain software
solutions for petroleum distributors and retailers, and Pacific Pride, an independent fuel
distributor franchisee network, as well as international subsidiaries. For more information about
Wright Express, please visit wrightexpress.com.
Safe
Harbor Statement/Forward Looking Statements
Statements in this press release regarding the proposed transaction between the Company and Target
and the proposed transaction between the Company and the Lenders, the expected timetable for
completing those transactions, future financial and operating results, benefits of the
transactions, future opportunities for the combined company, and any other statements about the
Company or ReDs managements future expectations, beliefs, goals, plans or prospects constitute
forward-looking statements within the meaning of the Private Securities Litigation Reform Act of
1995. Any statements that are
not statements of historical fact (including statements containing the words believes, plans,
anticipates, expects, estimates and similar expressions) should also be considered to be
forward looking statements. There are a number of important factors that could cause actual results
or events to differ materially from those indicated by such forward-looking statements, including
the failure to complete the financing arrangements contemplated by the commitment letter received
in connection with the transaction; the occurrence of any event or proceeding that could give rise
to the termination of the agreement; the inability to complete the transaction due to the failure
of the closing conditions to be satisfied; the outcome of any legal proceedings that may be
instituted in connection with the transaction; difficulties in integrating the Target or a failure
to attain anticipated operating results, each of which could affect the accretiveness of the
acquisition, and the other factors described in the Companys periodic reports and registration
statements filed with the Securities and Exchange Commission, which important factors are
incorporated herein by reference. The Company undertakes no obligation to update forward looking
statements to reflect changed assumptions, the occurrence of unanticipated events, or changes in
future operating results, financial condition or business over time. Readers are further advised to
review the Risk Factors set forth in the Companys Annual Report on Form 10-K, which further
detail and supplement the factors described in this Safe Harbor Statement.