Portland-based payment technology firm WEX Inc. has secured a $400 million investment from an affiliate of New York-based private equity firm Warburg Pincus LLC, the company announced Monday.
The investment is subject to customary closing conditions and is expected to close in the next several days, it said.
WEX also has obtained an amendment to its existing senior secured credit facilities providing it with increased financial flexibility, the company said in a news release. The combination of the investment and the credit agreement amendment will strengthen its financial profile and will enable the company to remain focused on its strategic initiatives as it navigates the global COVID-19 pandemic, it said.
“We are pleased to further fortify our balance sheet during the current uncertain operating environment while reaffirming our relationship with Warburg Pincus, (which) has demonstrated (its) strong commitment to the future growth of WEX,” company Chair and CEO Melissa Smith said in the release. “The combination of this investment and the recent credit agreement amendment put us in an even stronger financial position with additional financial flexibility, improved liquidity and increased cash on hand.”
Chandler Reedy and Stephanie Geveda, managing directors at Warburg Pincus, said in the release that given their “deep familiarity” and relationship with the company, “we are confident WEX has the capabilities and resources to emerge from the current environment stronger than ever.”
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