WEX backing out of eNett, Optal acquisition; eNett, Optal disagree

By Sara Rosenberg

New York, May 7 – WEX Inc. has advised eNett and Optal that it is not required to complete the acquisition of the companies because the pandemic and conditions arising in connection with it have had, and continue to have, a material adverse effect on the businesses, a news release said.

eNett and Optal intend to vigorously enforce their contractual rights and hold WEX to the purchase agreement.

According to eNett and Optal, the purchase agreement, which was executed on Jan. 24, expressly excludes the effects of a pandemic and the effects of any changes in laws or regulations, such as governmental travel restrictions, from the definition of material adverse effect.

For the transaction, WEX had received a commitment for a $1.052 billion seven-year term loan B priced at Libor plus 250 basis points.

BofA Securities Inc., Citizens Bank, MUFG, SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, BMO Capital Markets Corp., Santander Bank, KeyBanc Capital Markets Inc., Regions Capital Markets, Deutsche Bank Securities Inc. and Fifth Third Bank were designated as joint lead arrangers and joint bookrunners on the term loan.

eNett, a provider of B2B payment solutions to the travel industry, and Optal, a company that specializes in optimizing B2B transactions, were to be acquired for about $1.7 billion, split between $1.275 billion in cash and about 2 million WEX common shares.

Other funds for the transaction were expected to come from $300 million of notes.

Closing was expected in mid-year.

WEX is a South Portland, Me.-based provider of corporate payment solutions.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.