Wex has entered into an agreement to purchase eNett, a provider of business-to-business payments solutions to the travel industry.
In a separate deal, the financial technology service provider signed to acquire Optal, a company that specialises in optimising business-to-business transactions. The deal for both companies is valued at approximately $1.7 billion, including $1.275 billion in cash and two million shares of Wex common stock.
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. Wex is acquiring Optal from private shareholders. The two companies, which are already highly integrated companies, will be fully integrated under Wex’s ownership.
“The combination of Wex’s travel business with eNett and Optal further strengthens our leadership in the global travel marketplace,” said Melissa Smith, Wex chief executive.
“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.
“We are confident this transaction will enable us to accelerate our growth by deepening and expanding our position in the global travel market, broadening our product offerings to more fully address the needs of our travel customers, and diversifying our business geographically while reducing our exposure to macro-economic factors.”