Back to top

Image: Bigstock

Can Western Union's $500M Intermex Bet Boost its Global Edge?

Read MoreHide Full Article

Key Takeaways

  • Western Union will buy Intermex for $16 per share in a $500M all-cash deal.
  • The deal strengthens WU in high-growth Latin America remittance markets.
  • WU expects $30M in annual cost synergies within two years of closing.

The Western Union Company (WU - Free Report) has recently agreed to acquire International Money Express, Inc. (IMXI - Free Report) or Intermex in an all-cash deal, paying $16 per share, representing an approximately 50% premium. Intermex specializes in cross-border money transfers, especially between the United States, Latin America and the Caribbean. The deal is valued at $500 million.

This move is important because it strengthens Western Union’s position in high-growth remittance corridors, particularly in Latin America, where demand for cross-border transfers remains strong due to large migrant populations and increasing digital adoption. Intermex has built a strong network and brand in these markets, making it a strategic fit for WU’s expansion plans.

The deal is expected to close in the middle of next year and signals WU’s push to modernize and grow beyond its traditional core by integrating companies with both physical and digital transfer capabilities. Following the close of the deal, WU will serve Intermex’s 6 million customers and generate meaningful synergies. Within the first two years, it expects to generate $30 million in annual run-rate cost synergies.

WU expects the buyout to be immediately accretive to adjusted earnings, boosting EPS by more than 10 cents in the first full fiscal year. It reported second-quarter 2025 adjusted EPS of 42 cents, which missed the Zacks Consensus Estimate by 4.6%, and declined 4.5% year over year. Along with a greater market share, Western Union will likely secure significant cross-selling opportunities.

The premium price reflects confidence in long-term value creation and WU’s push to stay ahead of its peers in a growing remittance industry. Per Custom Market Insights, the U.S. Remittance Market is expected to witness a CAGR of 12.07% within the 2025 to 2034 period.

How Are WU’s Peers Faring?

Western Union’s peers include Euronet Worldwide, Inc. (EEFT - Free Report) and Remitly Global, Inc. (RELY - Free Report) .

Euronet offers global money transfers and currency exchange information through Ria Money Transfer, Xe and the Dandelion. Its Money Transfer unit offers real-time, cross-border payments across 199 countries and territories. Ria alone serves more than 20 million customers per annum. Euronet’s overall Money Transfer unit witnessed total transactions of 46.1 million in the second quarter, a 4% increase from a year ago. Its operating margin expanded by 296 basis points.

Remitly Global’s active customers increased 24% year over year to 8.5 million in the second quarter of 2025, while the send volume jumped 40% to $18.5 billion. It has a global footprint in more than 170 countries. Remitly Global is also focusing on stablecoins to improve agility and efficiency in cross-border payments.

Published in