Wex is set to acquire Payzer for an estimated $250 million, with potential additional payments of up to $11 million based on performance. The purchase will be funded through Wex’s revolving credit facility and available cash. This acquisition is anticipated to be finalized by the year’s end.
Wex specializes in corporate payment solutions for businesses, emphasizing travel payments, corporate cards, and health and employee benefits. On the other hand, Payzer’s software streamlines scheduling and invoicing for heating, plumbing, and roofing contractors, enhancing customer communication, supply ordering, and dispatching. The synergies between both companies’ customer bases make this acquisition attractive.
The acquisition is Wex’s second this year. It said in a filing in July that it had agreed to acquire record-keeping services provider Ascensus LLC in an all-cash deal for $180 million in July.