Western Union has agreed to acquire International Money Express (Intermex) in an all-cash transaction valued at approximately $500m.
The deal prices Intermex shares at $16 each, representing a 50% premium over its 90-day volume-weighted average price.
The acquisition is set to bolster Western Union’s retail presence in the US and extend its reach in high-growth regions, particularly in Latin America.
The acquisition aligns with Western Union’s strategy to expand its remittance business, particularly in Latin America, a historically high-growth area.
Western Union president and CEO Devin McGranahan said: “This acquisition is a disciplined, strategic step that strengthens our North America operations and expands our presence with key consumer segments across the US.
“Intermex has built a well-recognised brand, as well as strong agent and customer relationships. Together, we will expand our retail footprint, unlock operational efficiencies, and accelerate digital engagement.”
The deal provides an opportunity to serve Intermex’s six million customers, granting them access to Western Union’s digital platforms.
Additionally, Western Union aims to leverage Intermex’s operational expertise to drive sustainable retail growth in the US, thereby stabilising its retail footprint and improving customer access.
Western Union expects to realise $30m in annual run-rate cost synergies within two years of the acquisition.
The company also sees potential for additional revenue synergies by integrating Intermex’s capabilities into its network, enhancing service speed and reliability.
The transaction is projected to be immediately accretive to Western Union’s adjusted earnings per share by over $0.10 in the first full year following closure.
The boards of both Western Union and Intermex have unanimously approved the transaction, with Intermex’s board acting on the recommendation of its independent Strategic Alternatives Committee.
The deal is anticipated to close by mid-2026, pending customary closing conditions, regulatory approvals, and approval from Intermex’s stockholders.
Upon completion, a coordinated integration plan will be implemented to ensure a smooth transition for customers, agents, and partners.
Advisors for the transaction include PJT Partners and Sidley Austin for Western Union, while Intermex is advised by Financial Technology Partners and Holland & Knight. Lazard Frères & Co. and Cravath, Swaine & Moore are advising Intermex’s Strategic Alternatives Committee.
