Warburg Pincus Agrees to Sell EFS after Short Hold
October 20, 2015
Warburg Pincus has agreed to sell Electronic Funds Source to WEX (NYSE: WEX) for approximately $1.1 billion in cash and 4 million shares of common stock. Acquired by Warburg Pincus last year, reportedly for more than $1 billion, EFS provides customized corporate payment solutions for fleet and corporate customers with a focus on the large and mid-sized fleet segments; the company has established a network of over 14,000 accepting locations in the U.S. and Canada for the over-the-road fleet industry, servicing a base of more than 17,000 customers. Upon closing of the transaction, Warburg Pincus will become WEX’s largest shareholder, and firm managing director Jim Neary will join WEX’s Board of Directors. WEX stock closed Monday at $96.12, up 4.35%.