The move comes at a time when U.S. President Donald Trump’s stringent immigration policies have hurt the growth of remittance transactions in North America.
Western Union (WU) agreed to buy a smaller remittance firm, International Money Express (IMXI), in an all-cash deal valued at $500 million on Sunday.
International Money Express shareholders will receive $16 per share in cash, a move that implies an upside of 72.4% compared to the stock’s previous closing price, as per Stocktwits’ calculations. The deal gives the company, also known as Intermex, an equity valuation of $479.6 million.
The acquisition will give Western Union access to Intermex’s 6 million customers and “a well-positioned remittance business,” the companies said, and bolster its presence in historically high-growth Latin American geographies.
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, expected in mid-2026, the companies said. The combined company also expects to generate about $30 million in annual run-rate cost benefits within the first 24 months.
“Intermex has built a well-recognized brand, as well as strong agent and customer relationships. Together, we will expand our retail footprint,” said Western Union CEO Devin McGranahan.
The move comes at a time when U.S. President Donald Trump’s stringent immigration policies have hurt the growth of remittance transactions in North America. Last month, Western Union posted a 10% decline in North America revenue.
Retail sentiment on Stocktwits about Western Union was in the ‘bearish’ territory at the time of writing, while traders were ‘neutral’ about Intermex.
From December, the U.S. will impose a new tax on remittances, the money sent back by immigrants to their home countries, which could further exacerbate the situation for the companies.
Last month, Morgan Stanley analysts noted that they saw challenges to sustainably improving Union’s growth profile amid a weaker macroeconomic backdrop and an intensifying competitive environment.
Intermex stock has fallen 55.5% this year, while Western Union stock is down 24.1%.
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