LONDON, UK: W.A.G payment solutions (Eurowag) has entered into an agreement to acquire 100% of the share capital of WebEye Telematics, a leading Fleet Management Solution provider in Central and Eastern Europe, from the founders and management.

WebEye has an established presence in Europe with a total portfolio of more than 57,000 connected trucks. It is led by Pál Németh, who has been instrumental in the growth of the company and will remain in the role to oversee the integration in Eurowag.

Eurowag’s acquisition of WebEye will expand the Group’s customer base and WebEye’s customers will gain access to Eurowag’s unrivalled range of integrated end-to-end payment and mobility solutions leading to incremental revenue opportunities.

Furthermore, data from the connected trucks will provide insights and enable the continual development of new and improved solutions to address customers’ needs. The transaction will be funded from cash on balance sheet and is expected to be immediately earnings accretive.

Upon closing, Eurowag (LON: WPS) will pay a cash consideration of EUR 38.5 million taking into account adjustments for net debt and normalised working capital.

Eurowag will also pay a deferred settlement component within three years from closing, a part of which is subject to the fulfilment of certain KPIs. The maximum consideration, including the deferred settlement component, is capped at EUR 55.9 million.

WebEye generated revenues of EUR 16.5 million and normalised adjusted EBITDA of EUR 4.3 million in the year ended 31 December 2020. Revenues for the first six months of 2021 were EUR 8.3 million, while normalised adjusted EBITDA accelerated to EUR 2.6 million thanks to increased profitability of the business.

Closing of the deal is anticipated in Q1 2022, subject to customary completion conditions including clearance from the Hungarian Competition Authority, Romanian Competition Council and Ministry of Innovation and Technology in Hungary.

Martin Vohánka, CEO and Founder of Eurowag, said: “I am pleased to announce the acquisition of WebEye in line with the strategy we set out at the time of our recent IPO and further expanding our payments and mobility platform. With integrated services we aim to reduce the impact of our industry on the environment. The solutions allow to reduce the ratio of trips with empty load and improve road safety, as the fleet operators can have a thorough overview of the conditions of their vehicles.”

Pál Németh, the CEO of WebEye, said: “Joining forces with Eurowag opens doors to new markets and offers our customers access to a wide range of services and solutions for their businesses to thrive.

Eurowag’s integrated digital platform helps transport operators make their business more efficient and more profitable, while making the lives of truck drivers easier. I am excited to join the Eurowag team and help achieve its vision to democratize the on-road mobility industry through a technological revolution.”

Eurowag was founded in 1995 and is a leading pan-European integrated payments & mobility platform focused on the commercial road transportation industry. It makes life simpler for commercial drivers and operators across Europe through its unique combination of payments solutions, seamless technology, a data-driven digital eco-system and high-quality customer service. www.eurowag.com