Western Union finishes business negotiations with TGBP
Western Union is to pay £606 million to take over Travelex Global Business Payments.
Merger and acquisition consultants may have been present as Western Union completed a £606 million deal to take over the Travelex Global Business Payments (TGBP) division.
Hikmet Ersek, president and chief executive officer of Western Union - which has been in existence for 160 years - noted the deal will give his company greater reach in the "business-to-business cross-border payments market".
According to estimates by McKinsey and Company, global revenue for this sector between small to medium-sized businesses is around $24 billion.
Mr Ersek added the organisation is still focused on three areas of growth: stored value and prepaid, consumer money transfer and business-to-business payments.
Peter Jackson, chief executive of Travelex, added he is "delighted" by the agreement, which may have seen some negotiation skill demonstrated by both parties.
"[Western Union] will benefit from TGBP's expertise and customer franchise, while providing TGBP with significant opportunities for continued growth," he added.
Posted by Edel Quinn