Western Union Business Solutions

History

2021: Goldfinch Partners and Baupost Group bought Western Union Business Solutions for $910 million

In early August 2021, Western Union announced the sale of the business solutions division for $910 million. It was bought by investment companies Goldfinch Partners and Baupost Group.

Western Union created Western Union Business Solutions after acquiring Custom House in 2009 and Travelex Global Business Payments in 2011. The share of Western Union Business Solutions, which facilitates cross-border, currency payments and currency exchange solutions for small and medium-sized businesses and other organizations, amounted to about 7% of Western Union's total revenue for the 12-month period ended June 30, 2021.

Western Union Sold Business Solutions Division for $910 Million

With this sale, Western Union will be fully focused on maximizing the strength of our global cross-border payments platform and financial network. We will be happy to strengthen our global leadership in the movement of consumer money, supported by our iconic Western Union brand, and also continue to serve as a global provider of innovative cross-border payment solutions for partners such as financial institutions, telecommunications and technology companies. I am sure that the Western Union Business Solutions team, business and customers have found reliable strategic and financial partners represented by Goldfinch Partners and Baupost Group, "said Hikmet Ersek, President and Chief Executive Officer of Western Union.

After the planned sale of Western Union Business Solutions, Western Union will focus on increasing its entry into the global cross-border consumer payments market and expanding its open platform strategy to serve various customer segments. In addition, the company plans to increase the overall market by offering additional services to its unique global consumer base through a strategy of a consumer ecosystem under the Western Union brand.

The deal is expected to close in two stages. In the first phase, which will be completed in early 2022, Western Union Business Solutions, with the exception of the business managed through Western Union International Bank in the European Union and the UK, will move to a company controlled by Goldfinch Partners and Baupost Group. During the second close of the transaction, which will be completed by the end of 2022, the remaining business will be transferred to Western Union Business Solutions, managed through Western Union International Bank.

Western Union expects to receive more than $800 million from the deal, net of taxes, after the first close. After the transaction, the company will evaluate the options for using the funds received, based on market conditions and opportunities, as well as in accordance with the established priorities of capital allocation.^[1][2]

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