Wright Express, a provider of business payment processing and information management solutions, is acquiring the stock of CorporatePay, a privately held UK corporate prepaid solutions provider to the travel industry, for approximately GBP17 million (c. USD27.5 million) (view press release). The deal also includes a potential earn-out component of GBP5.5 million based on performance milestones.
CorporatePay, founded in 2008, is a rapidly expanding provider of direct, cobranded and private label solutions to the travel industry such as virtual cards, currency cards and expense management solutions. The company’s load volume last year totalled GBP248 million. Wright Express is acquiring CorporatePay to speed up ground presence in the UK and Europe, where they see considerable opportunity, and to supplement their product offering to include prepaid single use accounts and virtual cards.
Wright Express chairman and CEO, Michael Dubyak, says the acquisition of CorporatePay is ‘a natural fit.’ “With the European marketplace embracing virtual cards, the combination of debit and credit payment solutions enhances our competitive position in key segments of the travel industry and increases the size of our addressable market in terms of customer and geography. Furthermore, the addition of multi-currency prepaid cards provides cross-selling opportunities to our global network of travel customers,” said Dubyak.
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