Apax-backed Travelex sells Global Business Payments to Western Union for £606 million

5 July 2011

London, 05 July 2011

Travelex, the world's leading foreign exchange specialist, which is backed by Apax Funds, has announced the sale of Travelex Global Business Payments ("TGBP"), the business payments operations division to Western Union, a leader in global business payments, for a total cash consideration of £606m. The transaction is expected to complete by the end of 2011.

The transaction will allow Travelex to focus exclusively on the provision of cash and pre-paid cards to its 30 million retail customers as well as its fast-growing international consumer payments and wholesale banknote operation. This business has been experiencing strong growth, with revenues last year up 17% driven by continuing expansion and contract wins. Travelex now has a network of close to 1,000 stores and over 500 ATMs across 24 countries as well as a growing online platform.

Proceeds from the sale will be used to pay down debt and to provide significant capital for further investment as the group looks to accelerate its growth in existing and new markets. Central to this strategy is an expansion into fast growing markets, such as the acquisition in May of Grupo Confidence, Brazil's largest foreign exchange business, as well as a continued push to provide customers with access to innovative foreign exchange products and services across the globe.

In March, Travelex reported strong annual results, with total revenues up 16% to £739.7m, EBITDA up 9% to £130.6m and strong cash flow generation allowing for continued investment across the group. The sale of TGBP marks the latest stage in the transformation of Travelex and follows the sale of the group's Card Programme Management operations in April 2011.

Peter Jackson, Chief Executive of Travelex, said: "This is a transformational deal for Travelex, taking us back to our roots as a business with a clear focus on retail customers. Following this deal, our strengthened balance sheet and significant resources will enable us to make even more of our unique brand and market-leading position. We are now better placed than ever to benefit from the strong market dynamics that are driving the huge growth in international travel.

Michael Phillips, partner at Apax Partners, said: "We invested in Travelex in 2005 and have seen the business grow substantially, consolidating its position as a market leader. This transaction will allow Travelex's management to focus on the core retail part of the business, which we believe has even greater potential as a standalone business."