WEX, which builds simplified payment systems for businesses, has closed a $400m investment from private equity firm Warburg Pincus.
The deal includes convertible notes in an aggregate principal amount of $310m and $90m in common stock via a private placement.
This combination of investment and a credit agreement amendment will help Wex to bolster its financial profile and meet initiatives during the Covid-19 pandemic, Wex claims.
WEX has a goal of simplifying the payment systems for fleet, travel and healthcare companies. Its services are used in over ten countries and more than 20 currencies.
WEX’s chair and CEO Melissa Smith said, “We are pleased to further fortify our balance sheet during the current uncertain operating environment while reaffirming our relationship with Warburg Pincus, who has demonstrated their strong commitment to the future growth of WEX.
“The combination of this investment and the recent credit agreement amendment put us in an even stronger financial position with additional financial flexibility, improved liquidity and increased cash on hand. This better positions us to remain focused on our long-term strategic initiatives to drive our future success, and capitalise on the economic recovery when market conditions improve.”
Warburg Pincus is purchasing around 577,254 shares of common stock at $155.91 per share, which equates to around $90m.
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