SOUTH PORTLAND, ME--September 6, 2012: Wright Express Corporation , a leading provider of value-based business payment processing and information management solutions, and Fleet One, an over-the-road and local retail fueling business, announced today that they have entered into a definitive agreement whereby Wright Express will acquire Fleet One from private equity firms LLR Partners and FTV Capital for $369 million in cash. This transaction is expected to generate approximately $100 million in present value of tax benefits for Wright Express. The all cash transaction will be financed through the Company's existing credit facility and is anticipated to be immediately accretive to the Company's adjusted net income, which is a non-GAAP measure, excluding one-time charges related to the transaction. The transaction is anticipated to close in the fourth quarter of 2012, subject to regulatory approval and other customary closing conditions.
“This is a unique opportunity to combine Fleet One's strong brand and presence in the over-the-road market with Wright Express' best-in-class product set to service the full spectrum of fleets”
Fleet One provides fuel cards and fleet management information services that address the entire fuel card supply chain and has a meaningful presence in both the over-the-road and local fleet markets. For the last twelve months ending June 30, 2012, Fleet One's businesses generated revenue in excess of $56 million. They have 210,000 active cards, which are accepted at 60,000 locations, including 6,700 over-the-road locations.
"This is a unique opportunity to combine Fleet One's strong brand and presence in the over-the-road market with Wright Express' best-in-class product set to service the full spectrum of fleets," said Michael Dubyak, chairman, chief executive officer and president of Wright Express. "Fleet One's over-the-road business will give us an immediate presence in the heavy truck market in the U.S. and Canada, while the blending of Fleet One and Wright Express' small fleet and private label businesses should provide greater scale. Additionally, their enhanced portfolio of services will strengthen our position to support mixed fleets. We expect this acquisition to provide us with significant opportunities for growth and it further demonstrates our commitment to expanding our Americas fleet business," concluded Dubyak.
BofA Merrill Lynch acted as financial advisor to Wright Express while WilmerHale provided legal counsel. FT Partners acted as financial advisor to Fleet One while Pepper Hamilton LLP provided legal counsel.
Conference Call Details
Wright Express will host a conference call today, September 5, 2012, at 5:00 p.m. (ET) to discuss the Company's acquisition of Fleet One. A live webcast of this conference call will be available at the Investor Relations section of the Company's website at Wright Express. 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 Company's website.
For your convenience, the conference call can be replayed in its entirety beginning from two hours after the end of the call through September 11, 2012. If you wish to listen to the replay of this conference call, please dial (855) 859-2056 or (404) 537-3406 and enter passcode "27799507".
About Wright Express
Wright Express is a leading provider of value-based, business payment processing and information management solutions. The Company's fleet, corporate and prepaid payment solutions provide its more than 350,000 customers with unparalleled security and control across a wide spectrum of business sectors. The Company's operations include Wright Express Financial Services, Pacific Pride, rapid! PayCard, Wright Express Prepaid Cards Australia, Wright Express Fuel Cards Australia and CorporatePay Limited, England, as well as a majority equity position in UNIK S.A, a Brazilian company. Wright Express and its subsidiaries employ more than 900 associates in six countries.
Additional Information
Adjusted net income excludes non-cash mark-to-market adjustments on our fuel price related derivative instruments and the amortization of acquired intangible assets, as well as the related tax impacts.
