Ria Money Transfer, the third-largest global money transfer company and a subsidiary of Euronet Worldwide, Inc. (Nasdaq:EEFT), today announced it has acquired IME, a leading Malaysian-based money transfer provider, and certain affiliated companies. The purchase will be funded primarily by cash, with a small amount of Euronet stock.
The acquisition of IME provides Ria with immediate entry into the important Asian and Middle East send markets and will allow Ria to more quickly replicate the success achieved in the U.S. and Europe over the last decade. IME is highly complementary to Ria’s existing network and adds new send markets and payout locations in some of the world’s largest and fastest growing corridors. Ria has a proven track record of gaining market share when entering new markets and the addition of nine new send countries in Asia and the Middle East will complement Ria’s growth.
“IME is a well-known and trusted provider of remittances in the fast-growing Asian money transfer market, with world class service for both send and payout transactions,” stated Michael J. Brown, Euronet’s Chairman and Chief Executive Officer. “IME’s current markets account for approximately $115 billion in remittances per year according to the World Bank. I am particularly excited about the combination of IME and Ria as IME has produced double-digit growth rates in the South Asian market consistent with the growth we are seeing across other money transfer markets.”
IME’s unaudited revenues were approximately $40 million for the 12 months ended March 31, 2015. It will be consolidated into Euronet’s money transfer segment and the acquisition will be accretive to cash earnings per share in the first full year of operation by approximately $0.08 to $0.10 per share.