Travelex has offloaded its business payments operations for £606 million in a cash deal with Western Union.
Proceeds from the sale will provide “significant capital” for further investment as the group looks to accelerate its growth in existing and new markets as well as paying off debt.
The transaction means that Travelex will focus on its 30 million retail customers, with the provision of cash and pre-paid cards, as well its fast-growing international consumer payments and wholesale banknote operations.
These businesses achieved a 17% rise in revenues driven by expansion and contract wins. Travelex now has a network of almost 1,000 stores and more than 500 ATMs across 24 countries, as well as a growing online platform.
Travelex's business payments arm provides international business payments to more than 35,000 businesses across 14 countries, including the UK, US and Australia. Last year it reported revenues of £141.5 million and EBITDA of £44.6 million.
Travelex founder and chairman Lloyd Dorfman said: “This is a transformational deal for Travelex, marking a new chapter in our development.
“Travelex is already the world’s leading foreign exchange specialist and we are excited about the opportunities we have for continued growth. Following this deal, our strengthened balance sheet and significant resources will enable us to make even more of our unique brand and market-leading position.
“Western Union is the natural home for TGBP and we are confident that this great business will continue to thrive in the future."
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