Key Takeaways WU joins forces with dLocal to integrate modern digital payment methods within its online platforms.The rollout spans Chile, Mexico, Peru, Panama, Argentina and Brazil.The move supports WU's digital expansion and boosts remittance flexibility for customers.The Western Union Company (WU) recently teamed up with the renowned payments platform, DLocal Limited (DLO) . The collaboration is focused on integrating modern digital payment methods into Western Union’s online platforms across several Lat ...

Western Union has partnered with dLocal, a cross-border payment platform, to provide digital payment options on its online platforms in Latin American markets. The move is expected to align with “local habits and preferences”, offering customers in regions such as Chile, Mexico, Peru, Panama, Argentina, and Brazil a “more agile and modern” payment experience. The agreement incorporates locally relevant payment methods, including cards and bank transfers, into Western Union's digital channels. It is expe ...

Company Performance - Western Union's stock increased by 1.88% to $8.67, outperforming the S&P 500 which fell by 0.64% [1] - Over the past month, Western Union shares gained 5.71%, surpassing the Business Services sector's gain of 1.84% and the S&P 500's gain of 1.91% [1] Upcoming Financial Results - The upcoming earnings report is expected to show an EPS of $0.43, a decrease of 6.52% compared to the same quarter last year [2] - Quarterly revenue is anticipated to be $1.02 billion, down 1.39% from the previous year [2] Fiscal Year Estimates - For the entire fiscal year, earnings are projected at $1.70 per share and revenue at $4.08 billion, reflecting declines of 2.3% and 3.06% respectively from the prior year [3] - Recent analyst estimate revisions indicate a favorable outlook on the business health and profitability [3] Valuation Metrics - Western Union is currently trading at a Forward P/E ratio of 5.01, significantly lower than the industry average of 15.42, suggesting it is trading at a discount [6] - The company has a PEG ratio of 2.92, compared to the Financial Transaction Services industry's average PEG ratio of 1.28 [7] Industry Context - The Financial Transaction Services industry is part of the Business Services sector and holds a Zacks Industry Rank of 51, placing it in the top 21% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Key Takeaways Western Union debuts a WhatsApp service in Peru for cross-border transfers and dollar exchanges.Customers can send money to 200+ regions, with waived fees to select Latin American countries.Branded Digital transactions rose 9% y/y in Q2 2025, with revenues up 6%.The Western Union Company (WU) recently announced a new digital service channel in Peru, which enables customers to send money overseas and exchange U.S. dollars through WhatsApp. This innovative feature enables access to over 200 coun ...

Acquisition Overview - Western Union Company (WU) has agreed to acquire International Money Express, Inc. (Intermex) for $16 per share, representing a 50% premium, with a total deal value of $500 million [1][9] - The acquisition is aimed at strengthening WU's position in high-growth remittance corridors, particularly in Latin America, where demand for cross-border transfers is strong [2] Strategic Importance - Intermex specializes in cross-border money transfers, especially between the United States, Latin America, and the Caribbean, making it a strategic fit for WU's expansion plans [2] - The deal is expected to close in the middle of next year and will allow WU to serve Intermex's 6 million customers, generating meaningful synergies [3] Financial Impact - WU anticipates the acquisition will be immediately accretive to adjusted earnings, boosting EPS by more than 10 cents in the first full fiscal year [4] - The company expects to generate $30 million in annual run-rate cost synergies within the first two years following the deal's closure [3][9] Market Context - The premium price reflects WU's confidence in long-term value creation and its strategy to stay ahead of peers in the growing remittance industry [5] - The U.S. Remittance Market is projected to witness a CAGR of 12.07% from 2025 to 2034, indicating strong growth potential in the sector [5] Peer Comparison - WU's peers include Euronet Worldwide, Inc. and Remitly Global, Inc., both of which are also expanding their services in the global money transfer market [6] - Euronet's Money Transfer unit reported a 4% increase in total transactions year-over-year, while Remitly Global saw a 24% increase in active customers and a 40% increase in send volume [7][8]

Core Viewpoint - Rowley Law PLLC is investigating potential securities law violations related to the proposed acquisition of International Money Express, Inc. by The Western Union Company, which is valued at approximately $500 million [1]. Group 1: Acquisition Details - The proposed acquisition will provide stockholders of International Money Express with $16.00 for each share they hold [1]. - The transaction is expected to close in the second half of 2026 [1]. Group 2: Legal Investigation - Rowley Law PLLC is conducting an investigation into the actions of the board of directors of International Money Express concerning the acquisition [1]. - Shareholders interested in more information regarding the investigation can contact Rowley Law PLLC [2].

Core Viewpoint - Western Union is exploring the launch of its own dollar-backed stablecoin to remain competitive in the remittance market, particularly in non-U.S. markets [2][4]. Group 1: Market Context - The remittance company is facing increasing competition from cryptocurrency-centered money movement operations [2]. - The passage of the GENIUS Act has encouraged several companies to capitalize on digital assets, aiming to provide a more cost-effective way to send money globally [3]. - Western Union's core business involves overseas money transfers that can take days, highlighting the need for innovation in this area [3]. Group 2: Strategic Initiatives - The potential stablecoin could serve as a savings account in U.S. dollars for customers in countries where regulators allow such activities [2]. - The company aims to leverage stablecoin technology to reduce friction in cross-border transfers, facilitate crypto-fiat conversions, and decrease reliance on intermediaries [6]. - The introduction of stablecoins could help Western Union adapt to the evolving financial landscape and compete with companies like PayPal in the cross-border transfer market [4][6]. Group 3: Financial Implications - Western Union's stock has declined due to heightened competition, prompting analysts to suggest that the company could become a target for acquisition by a cryptocurrency firm [4]. - The CEO indicated that the company would consider acquisition offers that reflect its perceived value [5]. - The ability to convert stablecoins into fiat currencies presents a significant opportunity for the company, especially in markets with harder-to-convert currencies [7].

Summary of Western Union's Investor and Analyst Conference Call Company and Industry - **Company**: Western Union (WU) - **Industry**: Money transfer and financial services Key Points and Arguments 1. **Acquisition Announcement**: Western Union announced the acquisition of International Money Express for $16 per share in an all-cash offer, highlighting the strategic fit between the two companies [4][5] 2. **Strategic Rationale**: The acquisition aims to accelerate the transformation of Western Union's North American retail operations, leveraging Intermex's successful go-to-market strategy and strong relationships with agents and customers [5][6] 3. **Growth Potential**: Intermex's U.S. retail operations have doubled both principal and revenue over the past five years, indicating strong growth potential that Western Union aims to capitalize on [6][8] 4. **Digital Transformation**: Western Union plans to enhance Intermex's digital offerings by integrating its next-generation digital platform, targeting the rapidly digitizing customer base in the U.S. [7][13] 5. **Synergies**: The merger is expected to generate approximately $30 million in cost synergies, with a projected earnings accretion of $0.10 in the first full year post-acquisition [14][15] 6. **Customer Base Expansion**: The combined entity is expected to serve around 20 million North American retail customers, providing a significant opportunity for cross-selling additional financial services [13][14] 7. **Market Dynamics**: The acquisition is seen as a strategic move to navigate the ongoing migration from retail to digital services, particularly in light of recent market changes such as the remittance tax [14][16] 8. **Regulatory Considerations**: The integration process is expected to take 9 to 12 months, during which regulatory approvals will be sought [24][48] 9. **Brand Strategy**: Western Union intends to maintain a multi-brand strategy, allowing both brands to coexist and target different customer segments effectively [60][66] 10. **Operational Efficiency**: The integration aims to adopt best practices from both companies, enhancing operational efficiency and customer acquisition strategies [75][76] Other Important Content - **Management Team**: The strong management team at Intermex is viewed as a valuable asset that will contribute to the success of the combined company [6][12] - **Market Position**: The acquisition positions Western Union as a leading player in the remittance market, particularly in the U.S.-Mexico corridor [52] - **Competitive Landscape**: The deal is expected to enhance Western Union's competitive position in the fragmented U.S. retail marketplace, allowing for better pricing strategies and customer targeting [46][60] - **Financial Health**: The acquisition is not expected to materially impact Western Union's ability to return capital to shareholders through dividends and share repurchases [15][48] This summary encapsulates the key discussions and insights from the conference call regarding Western Union's strategic acquisition of Intermex and its implications for the company's future growth and market positioning.

Transaction Overview - Western Union will acquire International Money Express for $1600 per share in cash[16] - The transaction is expected to close in mid-2026, pending regulatory approvals and closing conditions[18] - The acquisition is expected to yield $30 million in annual run-rate cost synergies within 24 months[16] - The transaction is expected to be immediately EPS-accretive[17] Strategic Benefits - The acquisition increases scale in high-growth LACA geographies through complementary agent networks[17] - It expands and stabilizes Western Union's U S retail footprint, enhancing resilience and improving customer access across the Americas[17] - The combined company is projected to have approximately 70000 send locations[25] - The combined company is projected to have approximately 21 million customers[25] - The combined company is projected to have approximately $2100 million in revenue[25] Financial Impact - The transaction is expected to drive an incremental $010 of Adjusted EPS in the first full year[31] - The acquisition strengthens long-term Free Cash Conversion[35]

Company Acquisition - Western Union is acquiring International Money Express (Intermex) for $500 million, aimed at enhancing its retail business in the U.S. and accelerating digital customer acquisition [1][2] - The acquisition is described as a strategic move to strengthen North America operations and expand presence with key consumer segments across the U.S. [2] Brand and Customer Relationships - Intermex has established a well-recognized brand and strong agent and customer relationships, which will help Western Union expand its retail footprint and improve operational efficiencies [3] - The acquisition will provide Intermex's 6 million customers access to Western Union's digital platforms and capabilities [3] Market Position and Financial Performance - The deal is expected to stabilize Western Union's U.S. retail footprint, enhancing resilience and improving customer access across the Americas [4] - Western Union reported a 4% drop in revenue in the previous quarter, partly due to a slowdown in its North America retail business [4] Digital Payment Trends - Latin America is experiencing a significant shift towards digital payments, with digital payments accounting for 48% of eCommerce transaction value and 30% of POS transaction value in 2022, up from 14% and 2% in 2014 [6] - Projections indicate that by 2030, these shares will increase to 66% for online purchases and 49% for in-store transactions, while cash transactions are expected to decline from 67% in 2014 to just 17% by 2030 [6] Industry Transformation - The acceleration of digital payments in Latin America is characterized as a transformation, combining mobile-first innovation with inclusive financial infrastructure [7]