Western Union Makes $500M Acquisition to Expand Presence in Latin America and North America

Western Union is acquiring International Money Express for $500 million to scale its presence in Latin America and build its North American business. The deal is expected to close by mid-next year and strengthen Western Union's retail offering in the US. Analysts note that the price paid for Intermex is relatively low compared to other fintech acquisitions. Western Union expects $30 million in cost synergies within 24 months.

In a strategic move to bolster its presence in Latin America and North America, Western Union has agreed to acquire International Money Express (Intermex) for $500 million. The acquisition, announced on Sunday, will help Western Union expand its retail offerings in the United States and strengthen its operations in high-growth Latin American markets.

The deal, expected to close by mid-2026, will see Western Union pay $16 per share for Intermex, valuing the company at approximately $500 million. This represents a 72.4% premium over Intermex's previous closing price [2]. The acquisition is expected to be immediately accretive to Western Union's adjusted earnings per share by more than $0.10 in the first full year post-close.

Western Union CEO Devin McGranahan 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." [1]. The acquisition will provide Western Union with access to Intermex's 6 million customers and its well-recognized brand, strong agent relationships, and operational expertise [3].

Intermex, headquartered in Miami, has a strong presence in Latin America and has built a significant customer base in the region. The acquisition will enable Western Union to leverage Intermex's market knowledge and operational capabilities to drive growth in the Americas.

Analysts have noted that the price paid for Intermex is relatively low compared to other fintech acquisitions. This could be attributed to geopolitical turmoil between the U.S. and Latin America, a recent 1% U.S. tax imposed on cash remittances, and unspecified uncertainties in the traditional retail remittance market [1].

Western Union expects to generate $30 million in annual run-rate cost synergies within the first 24 months of the acquisition, potentially leading to additional revenue synergies through broader distribution and product offerings [3]. The combined company will also aim to accelerate digital new customer acquisition.

The acquisition comes at a challenging time for the remittance industry, with U.S. President Donald Trump's stringent immigration policies having hurt the growth of remittance transactions in North America. Last month, Western Union posted a 10% decline in North America revenue [2].

Following the completion of the transaction, Western Union and Intermex plan to implement a coordinated integration plan to ensure a smooth transition for customers, agents, and partners.

References:
[1] https://www.paymentsdive.com/news/western-union-intermex-international-money-express-acquisition/757380/
[2] https://stocktwits.com/news-articles/markets/equity/western-union-aims-to-jumpstart-north-america-growth-with-500-m-international-money-express-deal/chru0jVRd4V
[3] https://www.businesswire.com/news/home/20250810847315/en/Western-Union-to-Acquire-International-Money-Express-Inc.