FLEETCOR May Be Nearing Western Union Business Payments Buy |
Western Union and FLEETCOR are nearing an agreement to sell WUs business payments operations to the fleet payments firm according to reports in PE Hub on Wednesday Nov 15 Citing three unnamed sources reports said Citi is advising on the deal which could fetch 600 million for the B2B payments operations Though unconfirmed the deal would not come entirely as a surprise In September Deutsche Bank Analyst Ashish Sabadra said FLEETCOR is a likely buyer of Western Unions business payments unit The prediction followed Bloomberg reports that Western Union was moving to sell the operations which provides cross-border B2B payments services Sabadra said in a research note that FLEETCORs Cambridge Global Payments which it acquired last year positions the firm as an expanding B2B payments company and therefore an acquisition of Western Union business payments assets would make sense At the time of Bloombergs report a Western Union representative said the company does not publicly comment on possible mergers and acquisitions but an executive at the institution said it was open to divesting its business payments operations We certainly need to evaluate other potential opportunities for that business said the firms Chief Financial Officer Rajesh Agrawal at a banking conference at the time Our goal is going to be to maximize the value of that business whether its in our hands or someone elses FLEETCOR meanwhile also expressed continued interest in M A to grow its operations I hope the message is clear said CEO Ron Clarke during the companys third-quarter earnings call in October Were working on a number of new incremental growth initiatives in each of our four businesses Were going to keep getting behind the mid-sized accounts were on and were going to find a way internally or through M A deals to build a bigger position in the small market LATEST INSIGHTS Our data and analytics team has developed a number of creative methodologies and frameworks that measure and benchmark the innovation thats reshaping the payments and commerce ecosystem Check out our latest Digital Fraud Report Acquisition B2B B2B Payments cross-border B2B payments fleet payments M A News western union Whats Hot In B2B