WEX purchase expands presence in Europe
WEX Inc., an international fleet card and corporate payment services company based in South Portland, now owns the assets of ExxonMobil’s European commercial fuel card program through a majority owned joint venture, WEX Europe Services Limited. The acquisition completes a purchase-and-sale agreement the two companies announced in November 2013 and further extends WEX’s reach into foreign markets.
As part of this transaction, both companies have agreed to enter into a long-term supply agreement to serve the current and future Esso Card customers and to grow the business.
“Today’s announcement marks the completion of a key strategic milestone for WEX,” President and CEO Melissa Smith said in a press release announcing the transaction’s completion. “Expanding our presence in the European market through the addition of the Esso Card program enables us to broaden our international footprint, while laying the foundation for further expansion.”
Under the terms of the transaction, WEX purchased ExxonMobil’s commercial fleet fuel card program, which includes operations, funding, pricing, and sales and marketing in nine countries in Europe.
In mid-morning trading, shares of WEX (NYSE: WEX) were at $103.06, up slightly from the previous day’s close of $103.02.
In its latest earnings statement, WEX reported a 16% increase in total revenue for the three months ended on Sept. 30. It reported $221.1 million total revenue in the third quarter, compared to $191.5 million for the third quarter of 2013 and expects its fourth quarter revenue to be in the range of $206 million to $211 million.
The company anticipates closing the year with total revenue in the range of $812 million to $817 million and adjusted net income to be in the range of $198 million to $201 million, or $5.08 to $5.15 per diluted share.
WEX’s operations include WEX Bank, Fleet One, rapid! PayCard, Evolution1, WEX Australia, WEX New Zealand and WEX Europe, as well as a majority equity position in UNIK S.A., Brazil. WEX and its subsidiaries employ more than 1,700 people.
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