Wright Express Corp., a leading issuer and processor of fleet and other prepaid cards, has signed a definitive agreement to acquire Fleet One for $369 million in cash from private equity firms LLR Partners and FTV Capital.
Fleet One provides fuel cards and fleet management information services. For the 12 months ended June 30, its businesses generated revenue in excess of $56 million, according to a Sept. 5 press release announcing the deal. Fleet One supports 210,000 active cards accepted at 60,000 locations, including 6,700 over-the-road locations.
Wright Express expects the transaction to close in the fourth quarter. It predicts the acquisition will generate approximately $100 million in present-value of tax benefits. It will finance the all-cash deal through its existing credit facility, according to the release.
"Fleet One's over-the-road business will give us an immediate presence in the heavy truck market in the U.S. and Canada, while the blending of Fleet One and Wright Express' small fleet and private-label businesses should provide greater scale," Michael Dubyak, Wright Express' chairman, CEO and president, said in the release. "Additionally, their enhanced portfolio of services will strengthen our position to support mixed fleets."
Fleet One is a relatively small rival to Wright Express. Its biggest rival, FleetCor Technologies Inc., earned net revenue of $171.8 million during the second quarter alone. Wright Express earned $153.1 million in total revenue for the same three months ended June 30, meaning the Fleet One deal should help to close the financial gap with FleetCor.
BofA Merrill Lynch served as financial advisor to Wright Express while WilmerHale provided legal counsel. FT Partners served as financial advisor, Wright Express said in the release.