Leading financial technology provider WEX is set to acquire eNett International, a Singapore-based provider of integrated B2B payment solutions for the travel industry. The transaction also includes the acquisition of Optal, a shareholder of eNett and the primary issuer of eNett payments.
eNett is a leading provider of integrated B2B payment solutions for the travel industry. According to eNett’s website, its Virtual Account Numbers (VANs) allow travel agencies to generate a unique 16-digit Mastercard number used to pay travel suppliers quickly, efficiently and with less risk.
Under the terms of the agreement, WEX will acquire eNett and Optal for $1.7 billion. Of the estimated amount, $1.275 billion will be in cash and the remaining in the form of two million shares of WEX common stock.
Travelport holds a majority stake in eNett as part of a joint venture with Optal since 2009. In May 2019, Travelport was acquired by affiliates of Siris Capital Group.
Anthony Hynes, Managing Director and CEO of eNett, in a statement said, “eNett is thrilled to be entering into this new chapter of offering innovative payments solutions for travel companies globally as part of WEX. Customers will benefit from our shared commitment to the delivery of exceptional levels of service, a more comprehensive product suite, and expanded global reach.”
The WEX common stock issued as part of the transaction will be valued at $425 million. This is based on WEX’s volume-weighted average price over the past 30 trading days prior to signing of the agreement.
The transaction is subject to regulatory approval — and is expected to be completed in mid-2020. Credit Suisse and LionTree Advisors will serve as financial advisors, while Wachtell, Lipton, Rosen & Katz will act as the legal counsel to eNett.
Melissa Smith, WEX CEO and Chair, said in a statement, “The combination of our unique and complementary product suite, talented employees, and international expertise creates a powerhouse in the global travel industry.”
Optal was established over 10 years ago. Its business initially involved providing ACH products for the travel and logistics industries in Australia.