France is a key international payments hub, and Western Union's acquisition of TGBP
in France will lead to a stronger and more innovative force in the French market," said Raj Agrawal, President, Western Union Business Solutions.
Peter Jackson, Chief Executive of Travelex, said, "I am delighted that we have reached agreement with Western Union, who will benefit from TGBP's expertise and customer franchise while providing TGBP with significant opportunities for continued growth.
Western Union plans to accelerate growth for the combined business by utilizing the enhanced capabilities and resources to drive further geographic expansion, gain access to new customers and segments, introduce the TGBP third party distribution capabilities to Western Union's financial institution relationships, and leverage the Western Union agent network for distribution in certain markets.
Western Union will combine its existing business solutions operations with TGBP and become a top player in the fast-developing international business payments market, the buyer said in a press release.
TGBP, executing business payments for 35,000 customers in 14 countries annually, is expected to generate revenues of GBP150m in 2011, with a normalised EBITDA margin of some 30%.