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WEX Completes Purchase of EG Group's Fuel Card Business

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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 (FLT - Free Report) , 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.

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