WEX to Acquire Nabors' U.S. Fleet Businesses for $1.1B

TL;DR

WEX buying Nabors' US fleet biz for $1.1B to boost North American presence. Deal expected Q4 2024.

AI Summary

WEX Inc. announced on July 29, 2024, that it has entered into a definitive agreement to acquire the majority of the U.S. businesses of Nabors Industries Ltd. for approximately $1.1 billion in cash. This strategic acquisition is expected to significantly expand WEX's fleet business in North America and is anticipated to close in the fourth quarter of 2024, subject to customary closing conditions.

Why It Matters

This acquisition will bolster WEX's position in the North American fleet market, potentially leading to increased revenue and market share for the company.

Risk Assessment

Risk Level: medium — The acquisition involves a significant cash outlay and integration risks, and its success depends on achieving expected synergies and market conditions.

Key Numbers

• $1.1B — Acquisition Price (WEX Inc. is acquiring the majority of Nabors Industries' U.S. businesses for this amount.)

Key Players & Entities

• WEX Inc. (company) — Acquirer
• Nabors Industries Ltd. (company) — Seller
• $1.1 billion (dollar_amount) — Acquisition price
• July 29, 2024 (date) — Announcement date
• fourth quarter of 2024 (date) — Expected closing period

FAQ

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value WEX New York Stock Exchange
• $300 million — PMorgan") to repurchase an aggregate of $300 million of the Company's outstanding common sto
• $1.05 billion — per share, under the Company's existing $1.05 billion amended share repurchase authorization,
• $180.44 — hares of its common stock, based on the $180.44 closing stock price of the Company's co

Filing Documents

• wex-20240729.htm (8-K) — 28KB
• wex-20240729_g1.jpg (GRAPHIC) — 4KB
• 0001309108-24-000178.txt ( ) — 193KB
• wex-20240729.xsd (EX-101.SCH) — 2KB
• wex-20240729_def.xml (EX-101.DEF) — 16KB
• wex-20240729_lab.xml (EX-101.LAB) — 26KB
• wex-20240729_pre.xml (EX-101.PRE) — 16KB
• wex-20240729_htm.xml (XML) — 3KB

01 Other Events

Item 8.01 Other Events. On July 29, 2024, WEX Inc. (the "Company") entered into an accelerated share repurchase ("ASR") agreement with JPMorgan Chase Bank, National Association ("JPMorgan") to repurchase an aggregate of $300 million of the Company's outstanding common stock, par value $0.01 per share, under the Company's existing $1.05 billion amended share repurchase authorization, which was announced in February 2024. Under the ASR, the Company will make an initial payment of $300 million to JPMorgan and will receive an initial delivery of approximately 1.3 million shares of its common stock, based on the $180.44 closing stock price of the Company's common stock on July 26, 2024 representing approximately 80% of the total shares WEX expects to repurchase under the ASR. The final number of shares to be repurchased will be based on the average of the daily volume-weighted average prices of the Company's common stock during the term of the ASR, less a discount and subject to customary adjustments pursuant to the terms and conditions of the ASR agreement. The final settlement of the ASR is expected to be completed in the fourth quarter, subject to acceleration at JPMorgan's discretion.

Forward-Looking Statements

Forward-Looking Statements This Current Report on Form 8-K contains forward-looking statements including, but not limited to, statements about management's plans, goals and expectations with respect to the accelerated share repurchase transaction. Any statements in this Current Report on Form 8-K that are not statements of historical facts are forward-looking statements. When used in this Current Report on Form 8-K, the words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "project," "will," "positions," "confidence," and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such words. Forward-looking statements relate to our future plans, objectives, expectations, and intentions and are not historical facts and accordingly involve known and unknown risks and uncertainties and other factors that may cause the actual results or performance to be materially different from future results or performance expressed or implied by these forward-looking statements, including a change in the Company's ability to effectuate or realize the benefits of the accelerated share repurchase transaction as currently planned; as well as other risks and uncertainties identified in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission on February 23, 2024 and subsequent filings with the Securities and Exchange Commission. The forward-looking statements speak only as of the date of this Current Report on Form 8-K and undue reliance should not be placed on these statements. The Company disclaims any obligation to update any forward-looking statements as a result of new information, future events, or otherwise. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934 the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authoriz

View Full Filing

View this 8-K filing on SEC EDGAR