- $500M purchase of Intermex at $16 per share; target close mid-2026
- Intermex uses Ripple ODL; option for wider rollout under Western Union
- About $30M annual savings; >$0.10 adjusted EPS in first full year
Western Union is acquiring Intermex for $500 million in cash at $16.00 per share, roughly a 50% premium, with closing targeted by mid-2026 pending approvals. The deal brings Intermex’s live use of Ripple’s On-Demand Liquidity (adopted in early 2020) under Western Union’s umbrella, following 2015 pilots that cut settlement from days to seconds and suggested up to 60% lower costs. Management guides to about $30 million in annual savings within two years and more than $0.10 in adjusted EPS in the first full year. The combination extends retail reach in North America while enabling a measured ODL rollout and higher digital adoption.
Western Union to acquire Intermex: $500 million cash deal at $16.00 per share
The agreement sets a purchase price of $16.00 in cash for each Intermex share, about 50% above the recent average trading price used for valuation context. Boards at both companies have approved the transaction, and closing is targeted by mid-2026 subject to shareholder and regulatory approvals. Western Union gains a strengthened retail footprint across North America along with reach in fast-growing money transfer corridors, while bringing under one roof a live connection to Ripple’s ODL through Intermex.
Deal structure, valuation and expected timeline
The all-cash consideration gives clarity on value and proceeds for Intermex shareholders. The cited near-50% premium reflects a control price over the recent trading range and anchors the offer at $16.00 per share. The parties point to a closing window around mid-2026, with conditions including customary antitrust and financial services approvals and a shareholder vote. Integration planning can proceed in parallel so that day-one changes focus on continuity in retail and digital channels.
Strategic rationale: retail reach in North America and new corridors
The buyer aims to use Intermex’s presence in North America to deepen access in destination markets that have seen steady send volumes. The retail network, agent relationships, and localized servicing provide a base to increase market coverage while the combined platform supports stable transaction handling and compliance. The plan mentions improving operational efficiency and increasing digital adoption, which allows incremental volume without proportional increases in fixed cost.
Ripple connection: Intermex and On-Demand Liquidity since 2020
Intermex began working with Ripple in early 2020 to test faster and cheaper cross-border settlement. The approach limited ODL use in the core Mexico corridor while deploying it in newer regions where a speed or cost edge could matter more. The arrangement allowed Intermex to route certain flows through an ODL setup while keeping its main corridors on existing rails. This practical stance created a live ODL footprint that the acquirer inherits.
Western Union and Ripple: from 2015 pilots to a ready path for rollout
Western Union ran trials of Ripple technology as far back as 2015. Tests indicated settlement times falling from days to seconds and potential cost reductions of up to 60%, but the company did not deploy the system at scale. By buying Intermex, Western Union acquires an active ODL user and can evaluate incremental adoption with real corridor data rather than starting from pilots. This reduces the lift needed to expand ODL use, since compliance, treasury, and operational runbooks already exist within Intermex’s deployments.
Operational outlook: $30 million annual savings and EPS accretion
The company forecasts about $30 million in yearly cost savings within two years of closing. Areas likely to contribute include overlapping corporate functions, vendor consolidation, shared technology operations, and unified cash management. Management also guides to more than $0.10 in adjusted earnings per share added in the first full year after closing, reflecting both cost actions and transaction economics. These figures sit alongside revenue opportunities from better corridor coverage and digital conversion across web and app channels.
Western Union retail and digital expansion
The combined platform can allocate transactions across retail and digital interfaces depending on customer preference and corridor characteristics. The plan emphasizes expanding market coverage, where agent density, payout options, and reliable settlement matter for repeat usage. On the digital side, streamlined onboarding and clear pricing help raise adoption rates. Western Union can apply its experience in fraud controls and sanctions screening to support growth without diluting risk management, while Intermex brings agility and regional strengths.
Regulatory and closing conditions through mid-2026
The parties expect to close by mid-2026 after completing regulatory reviews and the shareholder approval process. Integration milestones can be sequenced so that agent contracts, payout partners, and banking relationships continue without disruption. By pacing changes, the buyer keeps corridor service stable while it aligns risk, compliance, and treasury practices across the enlarged group.
What ODL could change for settlement speed and costs
ODL routes transactions so that fiat funds can settle near-instantly after conversion steps, shrinking float time and reconciliation gaps. Intermex’s tracked usage suggests practical gains in regions where the legacy setup is slower or costlier. For a large network, even modest adoption can reduce working capital needs and improve payout reliability. Because Western Union previously observed test results showing seconds-level settlement and up to 60% cost reduction potential, the presence of a running ODL stack gives a path to measured expansion based on corridor-by-corridor results.
Western Union post-acquisition positioning in cross-border payments
After closing, Western Union holds a broader retail base in North America and a tested ODL connection via Intermex. The roadmap points to $30 million in annualized cost savings within two years and an uplift of more than $0.10 in adjusted EPS in the first full year after the deal completes. The buyer also points to revenue growth from combining its global platform with Intermex’s footprint in key markets. With trials dating back to 2015 and a partner that has used ODL since 2020, Western Union has a clear option to bring faster settlement into selected corridors if the economics remain attractive.
Conclusion
The transaction values Intermex at $16.00 per share in cash, a near-50% premium, and targets closing by mid-2026 subject to approvals. Intermex’s work with Ripple’s ODL since early 2020, together with earlier pilots that showed settlement from days to seconds and cost cuts up to 60%, gives Western Union a practical route to test broader deployment. The company guides to about $30 million in yearly savings within two years and more than $0.10 in adjusted EPS accretion in the first full year after closing, alongside plans to expand corridor coverage, retail reach in North America, and digital adoption.
Disclaimer
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