Western Union has won a $500 million deal to buy Intermex, a user of Ripple's On-Demand Liquidity (ODL) service.
This move allows Western Union to directly access Ripple's technology Through Intermex, we will expand our retail footprint across North America and strengthen our position in the rapidly growing remittance corridor.
Western Union to acquire Intermex
Under agreementWestern Union pays $16.00 in cash for each Intermex stock, assessing companies that are about 50% above their recent average trading price. It is on the boards of both companies Sign off This agreement, and they hope to close it by mid-2026, withholding regulatory and shareholder approval.
Western Union plans to integrate Intermex expertise with ITS My own Scale and technology to expand market coverage, promote digital adoption and improve operational efficiency.
The company expects the transaction to provide approximately $30 million in annual cost savings within two years, adjusting earnings per share by more than $0.10 in the first year after the closure. Additionally, there is room for revenue growth by combining Western Union's global platform with Intermex's strong foothold in key markets.
Intermex is a long-term Ripple ODL partner
Connecting to Ripple's ODL service is also very important. For context, intermex Partnership Early 2020 Ripple will explore faster, cheaper cross-border payment solutions.
The company has restricted the use of ODL in the core Mexican market, but that setting New regional technology that can present competitiveness corner. With the acquisition of InterMex, Western Union will have active ODL users under its umbrella.
These previous tests Showed Possibility of cut Payment times every second from a few days Slash The cost is 60% maximum. However, Western Union never deployed the technology on a large scale.
The acquisition changes this, give The company is a ready-made opportunity I'll bring it ODL to the operation if it chooses to do so. Western Union now has the opportunity to combine unparalleled global reach with Intermex's agility and ripple payment capabilities.
