Bulletin: WEX Inc.'s Acquisitions Further Scale, With Manageable Impact On Leverage

NEW YORK (S&P Global Ratings) Jan. 22, 2019--WEX Inc. recently announced its acquisition of Discovery Benefits Inc. (DBI), an employee benefits administrator, for approximately $425 million. As a part of the transaction, the sellers of DBI will also retain an equity interest of about 5% of the entity resulting from the combination of WEX's Health division and DBI. This acquisition follows the October acquisition of Noventis, an electronic payment network for commercial bills and invoices, for $310 million, which is expected to close in the first half of 2019. On Jan. 18, WEX amended its existing credit agreement for an additional $600 million through a combination of term loan and revolving credit facilities. The proceeds and cash on the balance

...NEW YORK (S&P Global Ratings) Jan. 22, 2019--WEX Inc. recently announced its acquisition of Discovery Benefits Inc. (DBI), an employee benefits administrator, for approximately $425 million. As a part of the transaction, the sellers of DBI will also retain an equity interest of about 5% of the entity resulting from the combination of WEX's Health division and DBI. This acquisition follows the October acquisition of Noventis, an electronic payment network for commercial bills and invoices, for $310 million, which is expected to close in the first half of 2019. On Jan. 18, WEX amended its existing credit agreement for an additional $600 million through a combination of term loan and revolving credit facilities. The proceeds and cash on the balance sheet will be used to fund these acquisitions. S&P Global Ratings believes the recent acquisitions will enhance WEX's Corporate Solutions and Employee Benefit Solutions segments with a manageable impact on financial leverage. Pro forma for the acquisitions,...

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