Travelex Global Business Payments (TGBP) conducts business payments annually for 35,000 customers in 14 countries.
The division provides international payments services to business clients, namely small and medium-sized enterprises (SME’s), corporations, and third party distribution partners including over 500 financial institutions.
Projected 2011 revenues for TGBP are approximately £150m, with a normalized EBITDA margin of approximately 30%.
The acquisition is expected to give Western Union strong foot hold in the large and growing international business payments market, which has been driven by rapid growth in cross-border trade.
Global SME cross-border payments revenues alone are estimated at $24bn (based on McKinsey and Company estimates), which Western Union believes is similar in size to the consumer cross-border remittance market.
Western Union president and CEO Hikmet Ersek said the acquisition of Custom House in 2009 gave them an entry into the business-to-business cross-border payments market, and Travelex Global Business Payments provides them immediate scale, further reach, and added capabilities.
"We are excited to welcome Travelex Global Business Payments customers and employees to the Western Union family," he added.
The transaction, which is subject to regulatory approvals, is expected to close in late 2011.
