Western Union terminates Intermex deal after approval snag
WU•Western Union said it is terminating its agreement to acquire Intermex after the companies failed to secure required approvals. Western Union said California’s conditions were unacceptable; the planned cash deal was valued at about $500 million, and neither company owes a termination payment.
1. Deal termination
Western Union said it is terminating its agreement to acquire Intermex after the companies failed to secure the approvals needed to complete the deal. The company said the final conditions set by California’s Department of Financial Protection & Innovation were unacceptable and would have required material changes to its business model.
2. Terms and rationale
Western Union said it had received approvals from every other jurisdiction except California. Neither company is required to make a payment following termination. Western Union had agreed last year to acquire Intermex for about $500 million in cash, a deal it said would have added more than $0.10 to adjusted earnings per share in the first full year after closing.
