Why WEX Stock Rose 17% in December
Shares of WEX (NYSE: WEX) rose 17.5% in December, according to data provided by S&P Global Market Intelligence. The company completed a major acquisition during the month at a reduced price, and Wall Street loved it. The stock made its biggest gains around that event and the subsequent commentary from analysts.
On Dec. 15, WEX used cash on hand to make a $577.5 million acquisition of eNett and Optal. So ended a bizarre and contentious transaction. In January 2020, before the COVID-19 outbreak had become a pandemic, WEX agreed to acquire eNett and Optal for a whopping $1.7 billion. But in May, it decided to pull out of the agreement, much to the displeasure of the other parties. In December, though, they were somehow finally able to come to terms on a revised deal, and WEX got a bargain.
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