Western Union Agrees to Buy Intermex for $500M, Boosting Global Remittance Business

Western Union is acquiring Intermex for $500 million to strengthen its position in high-growth remittance corridors, particularly in Latin America. The deal is expected to close in mid-2025 and will serve Intermex's 6 million customers, generating $30 million in annual run-rate cost synergies. Western Union expects the acquisition to be immediately accretive to adjusted earnings, boosting EPS by over 10 cents in the first full fiscal year. The acquisition reflects confidence in long-term value creation and Western Union's push to stay ahead of its peers in a growing remittance industry.

Western Union, a leading provider of cross-border and cross-currency money transfer services, has announced the acquisition of International Money Express Inc. (Intermex) for $500 million. The deal, expected to close in mid-2025, aims to strengthen Western Union's position in high-growth remittance corridors, particularly in Latin America.

The acquisition will provide Western Union with access to Intermex's 6 million customers, enabling it to expand its retail footprint and enhance its digital capabilities. The deal is expected to generate $30 million in annual run-rate cost synergies within the first 24 months, with potential further upside from revenue synergies. Western Union anticipates that the acquisition will be immediately accretive to its adjusted earnings per share (EPS), boosting EPS by over $0.10 in the first full year post-close.

Devin McGranahan, President and CEO of Western Union, stated, "This acquisition is a disciplined, strategic step that strengthens our North America operations and expands our presence with key consumer segments across the U.S." Bob Lisy, Chairman and CEO of Intermex, added, "This combination with Western Union brings together two complementary businesses that are well positioned to drive growth across North America."

The acquisition reflects Western Union's confidence in long-term value creation and its push to stay ahead of its peers in the growing remittance industry. The deal is subject to customary closing conditions and regulatory approvals, including clearance under the Hart-Scott-Rodino Act and approvals from financial regulators, as well as approval by Intermex's stockholders.

References:
[1] https://investors.intermexonline.com/news-releases/news-release-details/western-union-acquire-international-money-express-inc