Freshfields Bruckhaus Deringer advised
Skadden Arps said it’s advising the private equity firms, Boston-based Baupost Group and Seattle-based Goldfinch Partners.
The private equity firms are acquiring Western Union’s Custom House and Travelex units, which provide cross-border, cross-currency payments and foreign exchange for small- and medium-sized businesses and other organizations, according to a statement.
Hikmet Ersek, CEO of the financial services multinational, told Bloomberg TV Thursday that the divestiture frees his company to increase its focus on the consumer remittance market “worth over $700 billion.”
He also said Western Union will be able to focus on transactions between consumers and business, a market worth potentially $2 trillion.
“We are building a unique platform that allows connecting about 200 countries, 37 currencies, in a very agile and fast way,” Ersek said.
The statement says the transaction is expected to close in two stages, in early and late 2022.