Wex to acquire Electronic Funds Source for $1.1 billion

Reuters News
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Posted: Oct 19, 2015 7:15 AM

(Reuters) - Payment technology company Wex Inc <WEX.N> said on Monday it would acquire transportation services payments company Electronic Funds Source LLC for about $1.1 billion in cash.

The transaction will immediately add to earnings, Wex said. It will also result in savings of about $25 million over three years.

The deal also includes the issuance of 4 million shares to investment funds affiliated with EFS's current owner, private equity firm Warburg Pincus LLC [WP.UL].

On closure of the deal, the investment funds will become Wex's largest shareholder.

(Reporting by Rachel Chitra in Bengaluru; Editing by Maju Samuel)