The Prepaid Press - Wright Express Acquires CorporatePay

05/21/2013

Wright Express Acquires CorporatePay

Extends Offering to Include Prepaid Virtual Cards

SOUTH PORTLAND, ME (May 11, 2012) Wright Express Corporation, a provider of value-based business payment processing and information management solutions, has acquired the stock of CorporatePay, a privately held provider of corporate prepaid solutions to the travel industry in the United Kingdom, for approximately GBP 17 million (approximately US $27.5 million), net of cash assumed, plus a potential earn-out component of up to GBP 5.5 million based on performance milestones. The all cash transaction is anticipated to be slightly dilutive to the company's adjusted net income (which is a non-GAAP measure) in the first year of combined operations and slightly accretive thereafter.

Founded in 2008 and headquartered in London, CorporatePay is a provider of direct, cobranded and private label prepaid solutions to the travel industry, including virtual cards, currency cards and expense management solutions. In 2011, CorporatePay had GBP 248 million in load volume.

"CorporatePay's rapidly expanding product offering of business-to-business prepaid solutions, strong management team and solid base of operations is a natural fit with Wright Express," said Michael Dubyak, chairman and chief executive officer of Wright Express. "This transaction is strategically important for us for several reasons. First, it accelerates our on the ground presence within the UK and Europe, markets in which we see significant opportunities. Second, it supplements our existing product offering to now include prepaid single use accounts, or virtual cards. With the European marketplace embracing virtual cards, the combination of debit and credit payment solutions enhances our competitive position in key segments of the travel industry and increases the size of our addressable market in terms of customer and geography. Furthermore, the addition of multi-currency prepaid cards provides cross-selling opportunities to our global network of travel customers. We are thrilled to welcome CorporatePay to the Wright Express family."

Source: Wright Express; CorporatePay