SOUTH PORTLAND, Maine -- Wright Express Corp. said 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 provider of browser-based supply chain software solutions for petroleum distributors and fuel retailers.
Founded in 1999 and based in Louisville, Ky., 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 [image-nocss] 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 most of its revenue on a recurring basis from monthly site fees, which creates strong visibility into future revenues, Wright Express said. 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, added Wright Express. 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.
TelaPoint is an excellent strategic fit for Wright Expressan innovative company that provides us with a new product we can sell into markets we know well, said Michael Dubyak, president and CEO 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, CEO 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.
Dubyak said that TelaPoint will operate as a standalone company, and it remain headquartered at its existing facility in Louisville. 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, he said.
South Portland, Maine-based Wright Express is a major provider of payment processing and information management services to the U.S. commercial and government vehicle fleet industry. It provides these services for approximately 295,000 commercial and government fleets containing 4.4 million vehicles. And it markets these services directly as well as through more than 125 strategic relationships, and offers a MasterCard-branded corporate card.
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