Voss Capital wants to maximize shareholder value at International Money Express. How it may play out

Company Overview - International Money Express (IMXI) is an omnichannel money remittance services provider, facilitating money transfers digitally and through a network of agent retailers across the United States, Canada, Spain, Italy, and Germany [1][2] - The company serves over 4 million clients monthly and holds approximately 20% market share in the top five Latin America and Caribbean markets [2] Recent Acquisitions and Market Expansion - IMXI has made strategic acquisitions, including La Nacional in 2022 and I-Transfer in 2023, to enhance its remittance capabilities to the Dominican Republic and establish outbound remittances from Europe [2] - The company also acquired a money services entity in the UK in 2024, expanding its outbound remittance services [2] Financial Performance and Valuation - IMXI's adjusted EBITDA has increased over 2.5 times since going public six years ago, yet it trades at under 5 times the last 12 months' adjusted EBITDA, indicating it may be undervalued compared to peers like MoneyGram, which was acquired for approximately 8 times adjusted EBITDA [4] - Breach Inlet Capital Management suggests that IMXI should be valued at a premium to MoneyGram, implying a potential share price of around $30 if valued equally [4] Shareholder Activism and Strategic Review - Voss Capital has engaged with IMXI's board regarding a potential sale of the company, highlighting that the company remains undervalued despite solid operating performance [4][7] - There are indications of shareholder discontent, with approximately 31% of votes withheld against the lead independent director at the 2024 annual meeting, suggesting potential for a proxy fight if strategic plans are not executed [8] Market Landscape - The global remittances market is highly fragmented, with no single company holding more than 20% market share, presenting consolidation opportunities for IMXI with strategic acquirers like Western Union [5] - If IMXI remains independent, its growth strategy in digital and European markets will require significant investment, which may not align well with public market expectations [5]