SOUTH PORTLAND — Wright Express Corp., which processes automotive fuel purchases for commercial fleets and other credit card transactions, said it acquired CorporatePay, a U.K.-based provider of corporate prepaid cards for the travel industry, for about $27.5 million in cash.
The deal, which includes a potential additional payout based on performance milestones, is expected to slightly hurt Wright Express’ adjusted net income in the first year of combined operations and to be slightly beneficial to earnings after that.
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CorporatePay, which was founded in 2008, is headquartered in London. The company provides the travel industry with virtual cards, currency cards and expense management solutions.
“CorporatePay’s rapidly expanding product offering of business-to-business prepaid solutions, strong management team and solid base of operations is a natural fit with Wright Express,” said Michael Dubyak, chairman and chief executive officer of Wright Express. “It accelerates our on-the-ground presence within the U.K. and Europe, markets in which we see significant opportunities. Second, it supplements our existing product offering to now include prepaid single use accounts, or virtual cards.”
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