US-based field services software provider WEX has agreed to acquire Payzer, a cloud-based business management software provider, for around $250m.
Under the terms of the agreement, WEX will also pay additional contingent consideration of up to $11m based on defined performance metrics.
WEX plans to finance the transaction through its revolving credit facility and available cash.
The transaction is expected to be completed before the end of 2023, subject to customary closing conditions.
Upon closing, WEX will advance the expansion of its product suite and provide a new, scalable SaaS solution for its customer base of nearly 150,000 small field service companies.
WEX president, CEO, and chair Melissa Smith said: “We are thrilled at the prospect of providing an exciting new offering for our Mobility customers with the anticipated acquisition of Payzer.
“Payzer’s top-tier service offering and feature set is at the convergence of SaaS and payments.
“Payzer is an example of us finding a high-growth market with a customer base that overlaps with our current customer footprint, with a great product and service offering to address the needs of these customers.”
Payzer offers software for scheduling, dispatching, customer communications, invoicing, sales proposals, supply ordering, and maintenance agreements.
It initially focused on providing HVAC, plumbing, and roofing solutions to small businesses in the form of an intuitive software package.
In addition, Payzer maintains relationships and distribution partnerships with key Original Equipment Manufacturers (OEMs) in the industries, it serves.
WEX provides payment processing and information management services to commercial and government customers in the US, operating large trucking fleets.
It provides services to more than 600,000 customers in the US, Canada, South America, Europe, Asia, and Australia, with more than 19 million vehicles using its Mobility platform.
Last year, WEX unveiled its plans to acquire the Exxon Mobil Business Card programme to consolidate and administer the entire ExxonMobil’s commercial card portfolio.
