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

From the Filing

0001309108-24-000178.txt : 20240729 0001309108-24-000178.hdr.sgml : 20240729 20240729083643 ACCESSION NUMBER: 0001309108-24-000178 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 15 CONFORMED PERIOD OF REPORT: 20240729 ITEM INFORMATION: Other Events FILED AS OF DATE: 20240729 DATE AS OF CHANGE: 20240729 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WEX Inc. CENTRAL INDEX KEY: 0001309108 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-BUSINESS SERVICES, NEC [7389] ORGANIZATION NAME: 07 Trade & Services IRS NUMBER: 010526993 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-32426 FILM NUMBER: 241149097 BUSINESS ADDRESS: STREET 1: 1 HANCOCK STREET CITY: PORTLAND STATE: ME ZIP: 04101 BUSINESS PHONE: (207) 773-8171 MAIL ADDRESS: STREET 1: 1 HANCOCK STREET CITY: PORTLAND STATE: ME ZIP: 04101 FORMER COMPANY: FORMER CONFORMED NAME: Wright Express CORP DATE OF NAME CHANGE: 20041118 8-K 1 wex-20240729.htm 8-K wex-20240729 0001309108 False 0001309108 2024-07-29 2024-07-29 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) July 29, 2024 WEX Inc. (Exact name of registrant as specified in its charter) Delaware 001-32426 01-0526993 (State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.) 1 Hancock Street , Portland , Maine 04101 Address of principal executive offices Zip Code Registrant's telephone number, including area code (207) 733-8171 (Former name or former address if changes since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: ☐   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) ☐   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) ☐   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) ☐   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $0.01 par value WEX New York Stock Exchange Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company  ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐ 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