Prospective buyers face both chances and hurdles in the potential acquisition of Intermex Corporation
Intermex Explores Potential Sale to Optimize Growth and Expand Presence
Intermex, a leading remittance provider in Latin America and the Caribbean, has announced that it is exploring a potential sale during its Q3 2024 earnings. The sale process is being supported by FTP Securities (investment bank FT Partners).
Intermex is seeing strong growth and profitable margins in digital money transfers, but further investment is needed to maximize digital growth. The company's Chairman and CEO, Bob Lisy, stated that the move aims to optimize growth and better fulfill the company's potential as a fintech.
Intermex's significant market share in key US to Latin America corridors, coupled with its solid Latin American footprint, makes it an attractive prospect for businesses seeking swift market entry or expansion in cross-border payments. The global digital remittance market is projected to grow at a CAGR of 17.4% from 2025 to 2032, reaching nearly $99 billion.
Intermex's potential sale may allow it to break out of its cycles of sluggish growth and commit serious investment to expanding its presence beyond these markets. The growth opportunities for Intermex are numerous, including its Remittance-as-a-Service (RaaS) platform, which enables businesses to embed cross-border money transfers under their own brands.
The company recently launched a redesigned RaaS platform, lowering entry barriers related to technology, licensing, and compliance, allowing partners to expand rapidly in key Latin American markets. This expansion into B2B services represents a strategic growth vector beyond traditional consumer remittances.
Intermex's well-established payout network is one of the strongest in Latin America, supporting multiple delivery methods such as cash pickup, home delivery, and bank deposits. This competitive advantage in a large and growing remittance corridor like Mexico–U.S. is a key aspect of Intermex's market position.
The potential buyer profile for Intermex includes remittance senders, small businesses and fintech companies, established payment providers and banks, and markets in core corridors such as Mexico, Guatemala, Honduras, Dominican Republic, and El Salvador, with additional expansion into Southeast Asia, the EU, and Africa.
While competition with established players like Western Union is intense, especially in high-volume corridors such as Mexico, the company's digital platform positions it well to capitalize on the increasing adoption of digital money transfers by individuals and small businesses.
The exact financial figures and market share specifics for Intermex were not available in the sources, but would be critical for detailed valuation and buyer targeting. A move to becoming a privately held company, like MoneyGram in 2022, may also be a potential option for Intermex to break out of its cycles of sluggish growth and commit serious investment to expanding its presence and reach.
Access to extensive research and analysis on cross-border payments globally, including the industry-leading newsletter, is available for free by creating an account. The report covers topics such as Intermex's background and history, Latin American market presence, revenue performance and market comparison, Intermex's market position, digital money transfers, and growth opportunities. The growth opportunities for Intermex and the profile of potential buyers are being examined in relation to a potential sale.
Investing in Intermex could potentially optimize growth for a business, given its strong market presence in cross-border payments and the promising growth prospects of the digital remittance market. The company's Remittance-as-a-Service (RaaS) platform and solid payout network in Latin America offer attractive opportunities for businesses seeking expansion in the region.
Businesses considering a potential sale of Intermex should carefully evaluate the financial figures and market share specifics, as they would be crucial for detailed valuation and buyer targeting, especially as the company aims to break out of cycles of sluggish growth and commit serious investment to expanding its presence and reach.
