Apax’s Travelex sells business payments division to Western Union for £606m


Travelex, the UK foreign exchange company owned by private equity firm Apax Partners, is to sell its global business payments division to US payment services company Western Union.

Western Union is to pay £606m (€674.6m)in cash for the Travelex Global Business Payments division, which carries out business payments for 35,000 customers in 14 countries annually.

The division provides international payments services to small and medium-sized enterprises (SMEs), corporations, and third party distribution partners including over 500 financial institutions.

Projected 2011 revenues for the business are approximately £150 (€166.9m) million, with a normalized EBITDA margin of approximately 30 percent.

Western Union predicts that the combined TGBP-Western Union Business Solutions unit will grow its revenue at a compound annual growth rate (CAGR) of around ten per cent over the next three years. Apax acquired a majority stake in former parent Travelex for £1bn (€1.1bn) in 2005.

Western Union president and CEO Hikmet Ersek said, “Western Union remains focused on three key strategic growth areas: consumer money transfer, business-to-business payments, and stored value / prepaid. Our consumer money transfer business is strong and growing. Stored value is in the early stages of development both in the US and globally, and we believe our brand and network position us well for long-term success.

“In business-to-business payments, the combination of Travelex Global Business Payments and Western Union Business Solutions gives us a strong foundation in a growing and largely underserved market, and provides us the opportunity to drive additional growth for years to come,” he added.

Earlier this month, Apax acquired the Belgium and Luxembourg operations of cable company Numericable, alongside co-investor Deficom Telecom.

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