Net proceeds of the transaction, after taxes on the gain, are projected to be approximately $575 million and the Company intends to use the proceeds to return capital to shareholders and manage its capital structure. The Company expects to record a pre-tax gain on the sale of approximately $500 million when the transaction closes. The Speedpay business generated approximately $350 million of revenue in 2018, representing 6% of total Western Union revenue, and approximately $90 million of operating income, which includes approximately $10 million of corporate expenses allocated to the business. Speedpay provides electronic bill presentment and payment solutions to a variety of business sectors in the U.S., including utilities, auto finance, mortgage, consumer finance, insurance, telecommunications, and government finance. Our strategy remains focused on expanding our digital services, leveraging our platform to unlock new cross-border, cross-currency payments opportunities, and generating additional operating efficiencies.”Įrsek added, “We are also pleased to announce a new share repurchase authorization, which signifies our continued commitment to shareholder-focused capital allocation.” Hikmet Ersek, president and CEO of Western Union, stated, “Divesting the Speedpay business allows us to concentrate our resources on our cross-border money movement strategies and monetize a non-core asset for our shareholders. The new $1.0 billion share repurchase authorization will expire Decemand is in addition to the $544 million remaining under the previous authorization as of December 31, 2018. The Company also announced that its Board of Directors approved a new three-year share repurchase authorization. The transaction is expected to close by the end of the second quarter of 2019, subject to customary closing conditions and regulatory approvals. DENVER–(BUSINESS WIRE)– The Western Union Company (NYSE: WU), a global leader in cross-border, cross-currency money movement, and ACI Worldwide (NASDAQ: ACIW), a leading global provider of real-time electronic payment and banking solutions, today announced they have entered into a definitive agreement for ACI to acquire Speedpay, Western Union’s United States bill pay business, for $750 million in an all-cash transaction.
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