SOUTH PORTLAND, Maine — Payment processor WEX Inc. said it would buy privately held peer Evolution1 for $532.5 million in cash to strengthen its position in the health care payment processing market.
The deal, expected to close in the third quarter, would be funded through cash on hand and existing credit facility, WEX said in a statement Monday.
Excluding acquisition costs, the deal is expected to add to adjusted net income in the first year after it closes.
“The acquisition of Evolution1 advances WEX’s long-term strategy to extend our scalable business model into high-growth, high-value markets with complex payment systems,” said Melissa Smith, WEX’s president and CEO, in a prepared statement Monday.
Jeff Young, chairman and CEO of Evolution1, called WEX a “great fit … both culturally and operationally, enabling the business to enhance its leadership position in the consumer-directed health care payments space.”