Back to top

Image: Bigstock

WEX Completes Purchase of EG Group's Fuel Card Business

Read MoreHide Full Article

WEX Inc. (WEX - Free Report) yesterday announced that it has completed the acquisition of Go Fuel Card, the fuel card business of fuel station and convenience store retailer — EG Card.  The deal was announced on Mar 25, 2019.

Breda, Netherlands-based Go Fuel Card has presence in Belgium, France and Luxembourg with 200,000 proprietary cards in circulation. It serves small and medium enterprise (SMEs) as well as larger fleet players, operating on an independent proprietary card network with acceptance at more than 5,000 retail sites.

So far this year, we observe that shares of WEX have gained 51.1%, outperforming the 36% rise of the industry it belongs to.

 

Global Expansion of Fleet Solutions Business

The acquisition is likely to expand WEX’s Fleet business throughout EG locations in the United States, Europe and Australia. The business offers fleet vehicle payment processing services, particularly designed for commercial and government fleets.

We believe that acquisitions are a key growth catalyst for WEX. It has been actively acquiring and investing in companies, both in the United States as well as internationally, to expand its product and service offerings, thereby contributing to revenue growth and enhancing scalability.

Zacks Rank & Stocks to Consider

WEX currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A few better-ranked stocks in the broader Zacks Business Services sector are FLEETCOR Technologies , Global Payments (GPN - Free Report) and NV5 Global (NVEE - Free Report) , each carrying a Zacks Rank #2 (Buy).

Long-term expected EPS (three to five years) growth rate for FLEETCOR, Global Payments and NV5 Global is 15.4%, 16.9% and 20%, respectively.

This Could Be the Fastest Way to Grow Wealth in 2019

Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.

These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.

Click here to see these breakthrough stocks now >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Global Payments Inc. (GPN) - free report >>

NV5 Global, Inc. (NVEE) - free report >>

WEX Inc. (WEX) - free report >>

Published in