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Coronavirus: Travelport to fight WEX bid to walk away from $1.7bn eNett deal

Posted by Lee Hayhurst on
Coronavirus: Travelport to fight WEX bid to walk away from $1.7bn eNett deal

Travelport-owned eNett and parent company Opal are opposing attempts by WEX to walk away from an agreement to buy the payments firm for $1.7 billion.

The deal was agreed and announced on January 24, but Wex has issued a statement claiming that eNett and Optal have suffered a material impact due to the COVID-19 crisis.

In a statement, eNett, Travelport and Optal say they reject WEX’s attempt to walk away from its binding agreement.

The Global Distribution System operator and its payments division said the agreement was agreed after COVID-19 had already begun its spread across the globe.

And it said the deal “expressly excludes the effects of a pandemic from the definition of material adverse effect”.

The statement went on: “In addition, the definition of material adverse effect also excludes the effects of any changes in laws or regulations, such as governmental travel restrictions.

“WEX therefore assumed all of these risks when it signed the purchase agreement.

“ENett, Travelport and Optal intend to vigorously enforce their contractual rights and to hold WEX to its promises under the purchase agreement.

“ENett, Travelport and Optal expect WEX to perform its contractual obligations, including to finalise its financing, obtain the remaining governmental approvals, and close the transaction.

“ENett and Optal remain dedicated to maintaining the same high standard of service their customers have come to expect of them.”

 

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