South Portland, Maine-based WEX Inc. announced it has agreed to acquire Electronic Funds Source LLC from Warburg Pincus during the second quarter of 2016, subject to regulatory approval. We expect the company to fund approximately 75% of the purchase price with $1.1 billion in incremental debt and the remaining 25% with stock. We are revising our outlook on WEX to negative from stable and affirming our ratings at 'BB-'. The negative outlook reflects WEX's aggressive debt-financed growth strategy and our expectation for debt to EBITDA to be 6.5x to 7.5x (including deposits and securitizations) pro forma for the acquisition. On Oct. 19, 2015, Standard&Poor's Ratings Services revised its outlook on WEX Inc. to negative from stable and affirmed
