LONDON, UK: W.A.G payment solutions, a subsidiary of Eurowag, has reached an agreement to acquire 100% of the share capital of Grupa Inelo S.A. (Inelo), a leading Fleet Management Solutions (FMS) and Work Time Management (WTM) provider in Poland and Slovenia, for up to €306 million from INNOVA/6 SCA SICAV-RAIF, European Telematics Holding SA SCA and certain other vendors.

Eurowag was founded in 1995 and is a leading pan-European integrated payments & mobility platform focused on the commercial road transportation industry.

The consideration for the proposed acquisition is based on an enterprise value for Inelo of up to €306 million, made up of an agreed equity cash consideration of approximately €224 million and adjusted net debt of approximately €70 million, of which up to €58 million of debt will be repaid on or around completion of the proposed acquisition.

There is also a deferred consideration, based on Inelo’s EBITDA performance in the year to 31 December 2022, capped at €12.5 million, which will (if applicable) become payable in 2023 following approval of the audited consolidated financial statements of Inelo for the financial year ending 31 December 2022.

The proposed acquisition will be financed by existing cash and debt resources following the refinancing of the Group’s bank facilities announced on 22 September 2022.

Grupa Inelo has a highly experienced management team led by Magdalena Magnuszewska as Chief Executive Officer and Mikolaj Chruszczewski as Chief Financial Offer. Magdalena and Mikolaj and their senior team will be joining Eurowag in senior management roles following completion of the Proposed Acquisition.

Martin Vohánka, Founder and CEO of Eurowag, commented: “This strategically important transaction not only brings additional scale to Eurowag, it also takes us significantly closer to achieving our ambition of delivering a fully integrated, digital end-to-end platform for customers in the commercial road transportation sector.

Inelo adds approximately 87,000 connected trucks to our network and solidifies our position as a leading provider of fleet management solutions to the CRT industry in the CEE region. Importantly, it also adds exciting new products to our platform in working time management solutions, which provide mission critical services to customers and drive excellent customer retention. We look forward to welcoming Magdalena, Mikolaj and their team to Eurowag and working with them as we continue to expand our digital end-to-end platform.

Eurowag remains committed to ensuring any acquisition is additive both strategically and financially to the Group and this acquisition is expected to deliver double-digit adjusted earnings accretion in the first year of ownership. With our integrated payments and mobility platform, we believe Eurowag can not only make our customers’ lives better in what is an underserved and fragmented sector but also deliver compelling returns for our shareholders.”

Magdalena Magnuszewska, CEO of the Inelo Group, commented: “We are benefitting from the digitalization wave across the CRT industry, and this potential has been recognized by the Eurowag Group. I am glad that, thanks to our partnership with Eurowag, we will be able to continue the development of the “one stop shop for commercial road transport” offer throughout Europe, and by joining forces with a pan-European leader we will accelerate our growth.”