Wright Express Corporation ( WXS )
has penned a definitive agreement with Fleet One, a provider of
fuel cards, financial services and fleet management solutions, to
acquire the latter for a cash payment of $369 million. The deal,
which is subject to regulatory clearance and other closing
conditions, is expected to consummate in the fourth quarter this
Wright Express will acquire Fleet One from LLR Partners and FTV
Capital, the private equity firms which jointly own the company.
The company is also expected to finance this deal through its
existing credit facility. Its shares hit an all-time high,
increasing 8.8% (or $5.9) to close at $72.95 yesterday.
BofA Merrill Lynch, a unit of Bank of America
Corporation ( BAC ), is acting as Wright Express' financial
advisor while WilmerHale is providing legal advice on the deal. On
the other hand, FT Partners and Pepper Hamilton LLP are providing
financial and legal assistance, respectively, to Fleet One.
The deal will bolster Wright Express' adjusted net income after
making all one-time adjustments and also offer a significant tax
benefit of roughly $100 million.
The company's competitors are equally proactive on the expansion
front, striving to broaden their services and global footprint.
U.S. Bank - a division of U.S. Bancorp ( USB ) -
invested $75,000 in Innovate North State, a regional organization,
for 3 years to develop the manufacturing sector in Northern
Another peer, Lender Processing Services, Inc.
), signed a definitive agreement with RentRange, a market
intelligence company furnishing rental services, to provide
"property income data."
Wright Express carries a Zacks #3 Rank, which translates into a
short-term Hold rating. On the other hand, U.S. Bancorp and Lender
Processing Services both retain a Zacks #2 Rank, which translates
into a short-term Buy rating.
BANK OF AMER CP (BAC): Free Stock Analysis
LENDER PROC SVC (LPS): Free Stock Analysis
US BANCORP (USB): Free Stock Analysis Report
WRIGHT EXPRESS (WXS): Free Stock Analysis
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