Western Union to acquire FEXCO's money transfer business

Colorado, February 10: The Western Union Company (NYSE:WU), signed a contract today to acquire the money transfer business of Europe-based FEXCO.

The business deal, expected to close in the first half of 2009 and subject to customary regulatory approvals and closing conditions, is part of Western Union's strategy to be closer to its consumer base and position its brand for growth.

Western Union’s president and chief executive officer, Christina Gold, said, "FEXCO has been a valued partner of Western Union for nearly two decades and has played an important role in the expansion of our business in Europe.

“We believe the acquisition of FEXCO is timely and strategic. It will position us for margin expansion and growth over time."

Brian McCarthy, FEXCO's founder and executive chairman, added, "We are pleased that the strong relationship forged between both companies will sustain into the future as we continue to provide Western Union with strategic support.

“We believe that FEXCO can support Western Union's Global Money Transfer business through targeted development of new and enhanced applications for their markets in the future.”

The purchase of the FEXCO money transfer business and the surrender of Western Union's stake in FEXCO's other businesses will result in a net cash payment by Western Union to FEXCO of EUR 123.1 million (US$159.5 million).