The Western Union Company, a global leader in money transfer services, has signed an agreement to acquire the money transfer business of European-based Fexco, one of the company’s largest Agents.

The transaction, expected to close in the first half of 2009 and subject to customary regulatory approvals and closing conditions, is part of Western Union’s strategy to be closer to its consumer base and position its brand for continued growth, said a company statement.

Fexco currently manages and provides all services and support to more than 10,000 consumer-facing locations in seven European countries - the UK, Spain, Ireland, Sweden, Norway, Denmark and Finland.

With this new move, Western Union will now directly manage more than 10,000 consumer-facing locations in seven European countries and provide direct training, marketing and operations support.

It will also have greater influence over the consumer brand experience; be better positioned in Europe following the implementation of the Payment Services Directive (PSD), scheduled to take place in November of 2009, to enter new markets, introduce new products and services, and expand the type of agents to new classes of trade in certain countries.

Western Union president and chief executive officer Christina Gold said Fexco had been a valued partner of Western Union for nearly two decades and had played an important role in the expansion of its business in Europe.

"This transaction will give us greater management of our distribution in these regions and create a more flexible and responsive operational structure as we anticipate the coming regulatory changes to the money transfer business in Europe."

"We believe the acquisition of Fexco is timely and strategic. It will position us for margin expansion and growth over time," she added.

Brian McCarthy, Fexco’s founder and executive chairman, said, “A key to Fexco’s success has been its entrepreneurial spirit to build ahead of market opportunities. We are proud of the trusted money transfer network we have built across Europe and the customers we have served for almost two decades."

"Fexco is confident of Western Union’s ability to continue growing the business while expanding on our established consumer relationships and solid foundations," McCarthy remarked.

“We are pleased that the strong relationship forged between both companies will sustain into the future as we continue to provide Western Union with strategic support. We also believe that Fexco can support Western Union’s Global Money Transfer business through targeted development of new and enhanced applications for their markets in the future,” McCarthy added.-TradeArabia News Service