Eurowag to acquire fleet management solutions provider Inelo for €306m

W.A.G payment solutions, trading as Eurowag, has entered into an agreement with INNOVA/6 SCA SICAV-RAIF, European Telematics Holding, and some other vendors to acquire Grupa Inelo (Inelo), a fleet management solutions and work time management provider in Poland and Slovenia, for up to €306 million.

Through the acquisition of Inelo, Eurowag, a pan-European integrated payments and mobility platform focused on the commercial road transportation industry, will roughly double its number of connected trucks with the addition of around 87,000 connected trucks and improve its footprint in Poland.

The proposed acquisition will advance Eurowag’s integrated digital platform from which the company harnesses data to offer customer insights and a range of payment and mobility solutions.

Eurowag to acquire fleet management solutions provider Inelo for €306m. Photo courtesy of W.A.G. payment solutions.

Martin Vohánka — Eurowag Founder and CEO said: “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 [commercial road transportation] industry in the CEE [central and eastern Europe] 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.”

Eurowag, in a statement, said the transaction drives an attractive financial profile with double-digit adjusted earnings accretion expected in the first full year post completion.

In addition, Eurowag will improve efficiency and driver wellbeing, apart from cross-selling opportunities for Eurowag’s existing product suite.

Magdalena Magnuszewska — Inelo Group CEO said: “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.”

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

Expected to complete in the first quarter of 2023, the closing of the transaction is subject to the approval of the Circular by the UK Circular by the UK Financial Conduct Authority (FCA), Eurowag’s shareholders’ approval, and approval from relevant foreign direct investment regulatory authorities and antitrust bodies in Poland, Slovenia, as well as in North Macedonia.