Wex 'pleased' with England High Court Issues Hearing outcome

Wex is "pleased with the outcome" of the Preliminary Issues Hearing relating to the May 11 lawsuit filed by eNett and Optal denying that there has been a Material Adverse Effect on their businesses, in the High Court of Justice of England and Wales in the United Kingdom. Melissa Smith, Wex's Chair and CEO commented, "We are very pleased with the court's positive ruling in our favor. This upholds WEX's position that in the context of the Material Adverse Effect Clause, eNett and Optal operate in the B2B Payments Industry. We believe this ruling supports our determination that they have been disproportionately impacted by COVID-19 and WEX is not required to close the transaction as we stated in May." The trial of preliminary issues has concluded, among other things, that for the purposes of the Material Adverse Effect clause in the purchase agreement, eNett and Optal operate in the B2B payments industry with numerous other well-known participants, and that when determining whether eNett or Optal have been disproportionately impacted by COVID-19, a comparison will be made against these other B2B payments companies, the company said in a statement. It added, "Although there is a possibility that the decision will be appealed, Wex remains confident in its belief that eNett and Optal have been and are disproportionately impacted, and that Wex is not required to close the transaction pursuant to the terms of the purchase agreement because of this Material Adverse Effect. This matter will be decided conclusively at a subsequent trial."