Published: July 30, 2010
Wright Express to Acquire Market Leading Australian Fleet and Pre-Paid Card Provider
SOUTH PORTLAND, Maine - (BUSINESS WIRE) - Wright Express Corporation (NYSE: WXS), a leading provider of payment
processing and information management services to the U.S. commercial
and government fleet industry, today announced that it has entered into
a definitive share purchase agreement to acquire the Australian assets
of Retail Decisions consisting of its fleet and prepaid card businesses
from Palamon Capital Partners, a private equity firm, and its
co-investors Morgan Stanley Alternative Investment Partners and
AlpInvest Partners for approximately AU$353 million in cash
(approximately US$318 million). The all cash transaction is anticipated
to be immediately accretive to the Company's adjusted net income (which
is a non-GAAP measure) and is expected to close in the third quarter,
subject to regulatory approval.
This transaction consists of two highly profitable and well-run
businesses, each of which is a leader in its respective markets within
Australia:
-
ReD Fuel is Australia's largest multi-branded fuel card issuer with
270,000 cards in circulation. Their fleet cards are accepted at
approximately 90% of Australian fuel retailers.
-
ReD Prepaid is the market leading processor of prepaid cards in
Australia with approximately 60 percent market share.
For 2009, these businesses generated revenues totaling AU$61.4 million
combined.
"This transaction is another step in advancing our international
strategy," said Michael Dubyak, chairman and chief executive officer of
Wright Express. "ReD Fuel and Prepaid provide us with international
revenue diversification in an established, but growing market with an
opportunity to further service an estimated nine hundred thousand small
fleet vehicles in Australia currently without fuel cards. ReD Fuel will
allow us to go to market with full service capabilities in Australia
including private label, co-brand, and universal card programs, similar
to our North American strategy. In addition to our processing
capabilities, we will now be able to provide fully operational services
to oil companies in Australia and New Zealand.
"Importantly, ReD Prepaid's card business enhances our diversification
strategy and provides us a new platform for growth outside of our fleet
card business. This complements our successful efforts to diversify the
Company's revenue to reduce fuel-price sensitivity, led by our
MasterCard business," Dubyak said.
BofA Merrill Lynch acted as financial advisor to Wright Express while
WilmerHale and Mallesons Stephen Jaques provided legal counsel.
Conference Call Details
Wright Express will host a conference call today, July 30, 2010, at 9:00
a.m. (ET) to discuss the Company's ReD Australia acquisitions. A live
webcast of this conference call will be available at the Investor
Relations section of the Company's website (www.wrightexpress.com).
The live conference call also can be accessed by dialing (866) 334-7066
or (973) 935-8463. A replay of the webcast will be available on the
Company's website for approximately one year.
For your convenience, the conference call can be replayed in its
entirety beginning from two hours after the end of the call through
August 6, 2010. If you wish to listen to the replay of this conference
call, please dial (706) 645-9291 and enter passcode "91703745" .
About ReD Australia
ReD Australia is a leading Australian provider of payment processing,
prepaid and information management services. ReD Australia captures and
combines transaction information from its proprietary network with
specialized analytical tools and purchasing control capabilities in a
suite of solutions that enable fleets and prepaid customers to manage
their businesses more effectively.
About Wright Express
Wright Express is a leading global provider of payment processing and
information management services. Wright Express captures and combines
transaction information from its proprietary network with specialized
analytical tools and purchasing control capabilities in a suite of
solutions that enable fleets to manage their vehicles more effectively.
The Company's charge cards are used by commercial and government fleets
to purchase fuel and maintenance services for approximately 4.6 million
vehicles. Wright Express markets its services directly to fleets and as
an outsourcing partner for its strategic relationships and franchisees.
The Company's business portfolio includes a MasterCard-branded corporate
card as well as TelaPoint, a provider of supply chain software solutions
for petroleum distributors and retailers, and Pacific Pride, an
independent fuel distributor franchisee network, as well as
international subsidiaries. For more information about Wright Express,
please visit wrightexpress.com.
Safe Harbor Statement/Forward Looking Statements
Statements in this press release regarding the proposed transaction
between the Company and Target and the proposed transaction between the
Company and the Lenders, the expected timetable for completing those
transactions, future financial and operating results, benefits of the
transactions, future opportunities for the combined company, and any
other statements about the Company or ReD's managements' future
expectations, beliefs, goals, plans or prospects constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Any statements that are not statements of
historical fact (including statements containing the words "believes,"
"plans," "anticipates," "expects," "estimates" and similar expressions)
should also be considered to be forward looking statements. There are a
number of important factors that could cause actual results or events to
differ materially from those indicated by such forward-looking
statements, including the failure to complete the financing arrangements
contemplated by the commitment letter received in connection with the
transaction; the occurrence of any event or proceeding that could give
rise to the termination of the agreement; the inability to complete the
transaction due to the failure of the closing conditions to be
satisfied; the outcome of any legal proceedings that may be instituted
in connection with the transaction; difficulties in integrating the
Target or a failure to attain anticipated operating results, each of
which could affect the accretiveness of the acquisition, and the other
factors described in the Company's periodic reports and registration
statements filed with the Securities and Exchange Commission, which
important factors are incorporated herein by reference. The Company
undertakes no obligation to update forward looking statements to reflect
changed assumptions, the occurrence of unanticipated events, or changes
in future operating results, financial condition or business over time.
Readers are further advised to review the "Risk Factors" set forth in
the Company's Annual Report on Form 10-K, which further detail and
supplement the factors described in this Safe Harbor Statement.

News media:
Wright Express
Jessica Roy, 207-523-6763
Jessica_Roy@wrightexpress.com
or
Investors:
Wright
Express
Steve Elder, 207-523-7769
Steve_Elder@wrightexpress.com
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