Wex to acquire Electronic Funds Source for $1.1 billion

[October 19, 2015]  (Reuters) - Payment technology company Wex Inc said it would acquire Electronic Funds Source LLC (EFS), a provider of fleet cards to transportation companies, for about $1.1 billion in cash.

Wex will also issue four million shares to investment funds affiliated with EFS's current owner, private equity firm Warburg Pincus LLC [WP.UL], making them its largest shareholder.

South Portland, Maine-based Wex said the deal will diversify its earnings, while cutting its exposure to fuel price sensitivity.

The deal, subject to regulatory approvals, will immediately add to earnings and help the company save about $25 million over three years, Wex said.

Jim Neary, Warburg Pincus' managing director and member of its executive management group, will join Wex's board, the company said in a statement.

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

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