Wright Express Buys Palamon's ReD Australian Arm For EUR243 Million
July 30 2010 - 7:59AM
Dow Jones News
Palamon Capital Partners Friday said it has sold the Australian
units of Retail Decisions to U.S. payment processing company Wright
Express Corp. (WXS) for EUR243 million.
U.K.-based Retail Decisions, or ReD, specializes in payment
processing and payment fraud prevention. It was taken private by
Palamon in December 2006. Its Australian businesses comprise ReD
Fuel and ReD Prepaid, with combined revenue of EUR40 million.
Proceeds from this transaction will be used to repay all of
ReD's debt and to make payments to shareholders. Palamon and its
co-investors, Morgan Stanley Alternative Investment Partners and
AlpInvest Partners NV, will receive a payment roughly equivalent to
their initial investment and will retain their controlling
ownership in ReD.
Wright Express provides payment processing and information
management services to the U.S. commercial and government fleet
industry. Its acquisition of ReD Fuel and ReD Prepaid is part of
its diversification strategy to reduce reliance on its fleet card
business.
"This transaction is a great outcome for Palamon, ReD and the
management and employees of the Australian businesses," said
Jaime-Enrique Hugas, a principal at Palamon.
"Following this transaction, we will continue to build out ReD's
fast-growing payment fraud prevention business by penetrating new
markets and customer sectors," he added.
Following the sale of the Australian businesses, ReD will
consist of payment fraud prevention and processing business active
in Europe, the Americas, Asia-Pacific and South Africa.
-By Marietta Cauchi, Dow Jones Newswires; +44 207 842 9241;
marietta.cauchi@dowjones.com
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