WEX to Acquire Fuel Card Provider
WEX Inc. is moving to acquire Electronic Funds Source LLC (EFS) for $1.1 billion and 4 million shares of common stock that will be issued to investment funds affiliated with Warburg Pincus, EFS’ current owner.
EFS’ track record and broad customer acceptance in mid- and large-sized over-the-road ("OTR") fleet segments is an ideal complement to WEX. The combined company would draw on strengths from both companies’ offerings to provide a more efficient, more comprehensive and better-integrated solution to its customers.
EFS’ sophisticated OTR platform adds important functionality in controls, permitting, fuel price analytics, mobile account maintenance and strong acceptance in Canada. Furthermore, WEX and EFS have focused on different parts of the corporate payments spectrum, which will allow customers to benefit from the combined company’s more diverse set of capabilities.
For WEX customers, this includes the addition of a variety of corporate card options, including a single, multi-purpose card. Moving forward, the combination would deliver continuous innovation and sector expertise to anticipate industry trends and adapt the combined offering accordingly.