The Western Union Company (NYSE: WU), a leader in the money transfer segment of global payments, today announced it has completed the acquisition of international business-to-business payments provider Custom House.
Custom House processes payments originating in seven countries for payout in 120 countries.
With its focus on cross-border payments for small to mid-sized enterprises (SMEs) and an annualized revenue run rate of $100 million, the acquisition of Custom House will introduce Western Union to a new market, significantly expanding its service offerings and customer base. Western Union estimates that the SME cross-border payments market generates global revenue at least as great as the consumer-to-consumer money transfer market.
"Custom House opens up a world of opportunity for its customers," said Christina Gold, president and chief executive officer, the Western Union Company. "It enables small and medium-sized businesses to operate on a global scale, simplifying international payment transactions and managing the risks associated with foreign exchange. We believe that leveraging the brand, global footprint and financial strength of Western Union will enable Custom House to accelerate its international expansion and growth."
Through its multi-channel delivery system, Custom House enables more than 40,000 clients to make payments in over 150 currencies. Its clients range from businesses with a need to pay international staff to firms that want to pay vendors and merchants quickly and efficiently. The diversity of its client base and the breadth of the addressable market for cross-border SME payments will provide Western Union with a solid foundation in this new market.
"Custom House has a proven operating model, seasoned management team and differentiating technology," said Ranjana Clark, president, Global Business Payments and head of Global Strategy. "Its relatively small share of a large and expanding market offers an incredible runway for growth. This acquisition makes Western Union an instant player in the business-to-business payments space and its account-to-account capabilities complement our existing services."
Custom House, which will be re-branded under the Western Union umbrella of services, will continue to be headquartered in Victoria, British Columbia under the leadership of its existing management team.