Filing Flows › WEX (WEX) › Takeover & LBO
Is WEX (WEX) a takeover target?
A leveraged buyout at today's price plus 30% ($239.99 a share) would return about 14% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $210.79 a share (14% against today's $184.61). Historically 3.6% of companies with its figures were bought within a year (0.72× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $239.99 | today's $184.61 plus 30% |
| × shares | 34.6 million | |
| = Equity value | $8.3B | |
| + Debt refinanced | $5.3B | |
| − Cash | $5.3B | |
| = Enterprise value | $8.4B | 7.6× EBITDA of $1.1B |
| Fees | $167M | 2% of the price |
| New debt | $5.4B | 4.9× EBITDA at 7.65% a year; the limit that binds: 65% of the price |
| Buyer's own money | $3.1B | 36% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $3.1B | $1.2B | $416M | $434M | $5.0B |
| Year 2 | $3.3B | $1.3B | $382M | $512M | $4.5B |
| Year 3 | $3.5B | $1.3B | $343M | $588M | $3.9B |
| Year 4 | $3.7B | $1.4B | $298M | $660M | $3.2B |
| Year 5 | $3.8B | $1.4B | $248M | $728M | $2.5B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 5.9× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $8.4B | |
| − Debt left | $2.5B | |
| = Buyer's equity | $5.9B | |
| Money multiple | 1.91× | on $3.1B put in |
| Buyer's yearly return (IRR) | 13.8% |
Price against return
What the buyer makes at other premiums over today's $184.61; the IRR reaches 20% at $210.79 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $203.07 | 21.7% |
| 20% | $221.53 | 17.7% |
| 30% | $239.99 | 13.8% |
| 40% | $258.45 | 10.0% |
| 50% | $276.92 | 6.2% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $2.9B | |
| EBITDA, last 12 months | $1.1B | 38.1% of revenue |
| Depreciation and amortization | $332M | |
| Capital spending | $187M | |
| Debt | $5.3B | |
| Cash | $5.3B | |
| Share price | $184.61 | on Oct 30, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows 8.0% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 27% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers in its sector paid a median premium of 40% over the share price before the deal (the middle half 14.7% to 60.2%), according to the 20 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, WEX would cost about $258.45 a share, $8.9B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $211.75 | $7.3B |
| Median | 40% | $258.45 | $8.9B |
| High end (a quarter paid more) | 60.2% | $295.75 | $10.2B |
The odds, from history
Historically 3.6% of companies with its figures were bought within a year (0.72× the average). Its figures put it in decile 3 of 10 (10 = the most likely to be bought). The odds come from a model of every merger proxy, tender-offer response and going-private statement filed on EDGAR since 2011, set against each company's size, margins, debt, cash flow and growth the year before.
WEX's latest quarter
WEX, Q3 2026: revenue $780M (+13% year over year), operating margin 30.6%, net earnings $134M, operating cash flow −$11.2M. The chart follows the revenue to costs, profit and cash.
Questions
Is WEX being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy WEX?
A leveraged buyout at today's price plus 30% ($239.99 a share) would return about 14% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $210.79 a share (14% against today's $184.61).
What would a takeover of WEX cost?
Takeovers in its sector paid a median premium of 40% over the share price before the deal (the middle half 14.7% to 60.2%), according to the 20 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, WEX would cost about $258.45 a share, $8.9B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.