- Intermex announces the acquisition of LAN Holdings soon after partnering with Ripple Labs.
- Through this collaboration, the company has also purchased I-Transfer.
Ripple Lab’s partner, International Money Express, Inc. (Intermex), a leading omnichannel money remittance services company, has announced that it has acquired LAN Holdings, Corp. (“LAN Holdings”). Through this acquisition, Intermex has also acquired a Spain-based money remitter called I-Transfer Global Payments E.P., S.A.U., (“I-Transfer”). It facilitates the transfer of money from Spain, Italy, and Germany.
According to Bob Lisy, chairman, chief executive officer, and president of Intermex, the move would enable the company to render services within these regions for the first time while expanding its services in Canada.
We are excited to close on the international entities for the La Nacional acquisition which represent a tremendous opportunity for growth. Intermex will now provide outbound remittances from Spain, Italy, and Germany for the first time, and will expand its services and presence in Canada.
The Company’s global footprint now reaches more than 60 countries from our current 28. In these new markets, we will continue to pursue our mission of great service to our customers and partners, with a continued focus on profitable growth for our shareholders.
The release discloses that $8.6 million was paid on closing, and would be subjected to customary price adjustment. The leadership team is expected to report to Bob Lisy as LAN Holdings through I-Transfer operates as an independently licensed entity.
Intermex operates as one of the largest remitter services in the world with 100,000 payer locations in 170 countries. According to the company, it processes over 30 million transactions per year.
Ripple seals partnership with Intermex
Recently, Ripple sealed a partnership deal with the company. According to reports, the partnership focuses on the Mexico-US corridor, as Mexico received $36 billion in remittance payments last year. This was the third largest in the world. Intermex is also expected to leverage Ripple’s technical ability to instantly send transactions at a lower cost.
The World Bank estimates that the average global remittance transaction costs 6.82 percent of the money sent. Its target is set at below 3 percent by 2030. Bob Lisy commented:
We are pleased to have begun the partnership with the Ripple team, and look forward to implementing new solutions on RippleNet and ODL to help drive growth and deliver greater efficiency.
Ripple’s focus on the Mexico-US remittance corridor is also evident in its partnership last year with a leading international remittance service, MoneyGram. The company has also sealed partnerships with goLance, Viamericas, and FlashFX. Ripple’s On-Demand Liquidity (ODL) product is used in some prominent corridors including the United States, Philippines, Australia, and Europe.
MoneyGram Chairman and CEO Alex Holmes believe that the remittance industry has significantly evolved over the last 10 years due to competition.
What has amazed me the most is the amount of pressure that legacy players face. The fundamental challenge of moving money around the world is that there isn’t a lot of coordination between financial institutions and there should be more solutions to connect all of these pieces. More and more companies are looking to make the economy move like it should.
