Western Union acquires Canada Custom House

The Western Union Company, a leader in global payments, has concluded an agreement to purchase Canada-based Custom House, Ltd., a leading, independent provider of business-to-business international payment solutions for small and medium enterprises. The US $370 million cash transaction is expected to close in the third quarter 2009, subject to regulatory approvals and customary closing conditions. Today, Custom House is on plan to generate US $100 million in annualized revenue, primarily from senders in seven countries including Canada, the United States, the United Kingdom, Italy, Australia, Singapore and New Zealand. Among the company’s advantages there are a sizable client base, significant international payment capabilities, a strong network of banking partners and scalable operations that are poised to capitalize on this opportunity. Custom House's multi-channel payment solutions include their online platform, which provides reliable web-based payment capabilities to over 120 countries worldwide. These strengths will be enhanced by Western Union's globally recognized brand, international footprint and financial strength. Custom House will become part of the Western Union Global Payments segment (formerly the consumer-to-business segment), and continue to operate under its existing management team in Canada. Christina Gold, president and chief executive officer of Western Union, commented the purchase: "Custom House is a dynamic business and has a significant customer base in the cross-border payments market, which generates strong margins and cash flow. Western Union intends to grow this business by attracting new customers and entering new geographies."