Wright
Express Adds Fuel Inventory Solution with Acquisition of TelaPoint
Transaction Expands Services Offered to Merchants, Distributors and Fleets
In
Conjunction with Announcement of Second-Quarter Financial Results, Wright Express to
Discuss Transaction on Conference Call at 9:00 a.m. ET
SOUTH
PORTLAND, Maine, Aug. 7 /PRNewswire-FirstCall/ --
Wright Express Corporation (NYSE: WXS) today announced that it has acquired
privately held TelaPoint, Inc. for approximately $40 million in cash, financed
through the Company's existing credit facility. TelaPoint is a leading provider
of browser-based supply chain software solutions for petroleum distributors and
fuel retailers.
Founded in
1999 and based in Louisville,
Kentucky, TelaPoint was the first
browser-based software company to provide business-to-business applications
focused exclusively on information solutions for oil companies and the
petroleum distributor market. The TelaPoint application suite enables
convenience stores and fuel outlets to improve the efficiency of their fuel
replenishment, buying and administrative operations.
Operating
on a software-as-a-service business model, TelaPoint generates the majority of
its revenue on a recurring basis from monthly site fees, which creates strong
visibility into future revenues. TelaPoint's
customers include more than 20,000 retail and wholesale fueling sites across
the country, and the company has relationships with approximately 250 petroleum
carriers.
TelaPoint
is a rapidly growing and profitable business. Revenues for 2008 are forecasted
to be approximately $8 million. Wright Express expects the acquisition to be
slightly accretive, excluding the amortization of purchased intangibles, in the
first 12 months of combined operations and have no impact on the Company's
margins.
Management
Comments
"TelaPoint
is an excellent strategic fit for Wright Express -- an innovative company that
provides us with a new product we can sell into markets we know well,"
said Michael Dubyak, president and chief executive
officer of Wright Express. "TelaPoint's
browser-based application suite will broaden and strengthen our portfolio of
information solutions, offering us potential to diversify our revenues. At the
same time, we expect TelaPoint's products to further
secure our position with merchants, distributors and fleets by adding value to
their relationships with Wright Express."
Michael
Dahlem, chief executive officer of TelaPoint said, "We are delighted to be
part of the Wright Express organization. We believe that our combined product
offerings will create added value for the customers of both companies."
"TelaPoint
will operate as a standalone company and remain headquartered at its existing
facility in Louisville,"
said Dubyak. "TelaPoint has a talented workforce
and management team. We expect the TelaPoint organization to maintain its
record of strong growth and play a key role as we continue to diversify our
revenue stream."
Conference
Call Details
Wright
Express will host a conference call today, August 7, 2007, at 9:00 a.m. (ET) to
discuss the Company's second-quarter 2007 financial results and the TelaPoint
acquisition. A live webcast of this conference call
will be available at the "Investor Relations" section of the
Company's website (http://www.wrightexpress.com). The live conference call can
also be accessed by dialing (800) 479-1628 or (719) 457-2729. A replay of the webcast will be available on the Company's website for
approximately three months.
About
Wright Express
Wright
Express is a leading provider of payment processing and information management
services to the U.S.
commercial and government vehicle fleet industry. Wright Express provides these
services for approximately 295,000 commercial and government fleets containing
4.4 million vehicles. Wright Express markets these services directly as well as
through more than 125 strategic relationships, and offers a MasterCard-branded
corporate card. The Company employs more than 675 people and maintains its
headquarters in South Portland,
Maine. For more information about
Wright Express, please visit http://www.wrightexpress.com.
This press
release contains forward-looking statements, including statements regarding
Wright Express Corporation's: expectation that TelaPoint is a rapidly growing
and profitable business; forecasted revenues for TelaPoint in 2008; expectation
that the acquisition will be slightly accretive excluding the amortization of
purchased intangibles, in the first 12 months of combined operations and have
no impact on Wright Express' margins; expectation that TelaPoint's
browser-based application suite will broaden and strengthen its portfolio of
information solutions and potentially diversify revenues; expectation that TelaPoint's products secure Wright Express' position with
merchants, distributors and fleets by adding value to their relationships with
Wright Express.
These
forward-looking statements include a number of risks and uncertainties that
could cause actual results to differ materially. These risks and uncertainties
include: volatility in fuel prices; third-quarter and full-year 2007 fueling
patterns; the effect of the Company's fuel-price-related derivative instruments;
effects of competition; the potential loss of key strategic relationships;
decreased demand for fuel and other vehicle products and services and the
effects of general economic conditions on the commercial activity of fleets;
the Company's ability to rapidly implement new technology and systems;
potential corporate transactions including alliances, mergers, acquisitions and
divestitures; the risks associated with the integration and profitability of
TelaPoint, Inc.'s operations; changes in interest rates and the other risks and
uncertainties included from time to time in the Company's filings with the
Securities and Exchange Commission, including the annual report on Form 10-K
filed on February 28, 2007, and the Company's other periodic and current reports.
Wright Express Corporation undertakes no obligation to update these forward-
looking statements at any future date or dates.
|
News Media Contact
|
Investor Contact
|
|
Jessica
Roy
|
Steve
Elder
|
|
Wright
Express
|
Wright
Express
|
|
207.523.6763
|
207.523.7769
|
|
Jessica_Roy@wrightexpress.com
|
Steve_Elder@wrightexpress.com
|
SOURCE Wright Express Corporation
-0- 08/07/2007
/CONTACT: News media contact - Jessica Roy, +1-207-523-6763,
Jessica_Roy@wrightexpress.com, or Investor contact - Steve Elder,
+1-207-523-7769, Steve_Elder@wrightexpress.com, both of Wright Express/
/Web site: http://www.wrightexpress.com /
(WXS)
CO: Wright Express Corporation; TelaPoint, Inc.
ST: Maine
IN: CPR ECM
SU: TNM CCA
AD-KG
-- NETU048 --
2086 08/07/2007 07:00 EDT http://www.prnewswire.com
