Electronic payments processor and ATM operator Euronet has signed an agreement to acquire Los Angeles-based global money transfer company Ria Envia (Ria) in a cash and stock deal worth around $490 million.
Established in 1987, Ria is the third-largest global consumer-to-consumer remittance company and processes $4.5 billion in money transfers annually. The company operates in the US, Canada, UK, Ireland, Germany, Sweden, Switzerland, France, Italy, Spain, Puerto Rico, The Dominican Republic and Australia. In addition, Ria has licence applications pending in Belgium and Greece.
Under the deal Euronet will acquire 100% of Ria's outstanding common stock for $380 million in cash, $110 million in Euronet stock and certain stock appreciation rights.
Euronext expects the acquisition to cut 2007 earning by around seven cents to 13 cents, but says the unit will add about 20 cents to 25 cents a share to its 2008 earnings.
The deal is expected to close by the end of the second quarter of 2007.