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MIAMI - International Money Express, Inc. (NASDAQ: NASDAQ:IMXI), commonly known as Intermex, has acquired key assets and operations of Amigo Paisano, S.A., a remittance service provider based in Guatemala. The acquisition, announced today, includes popular brands and trademarks recognized in the U.S., Europe, and Latin America. The $663 million market cap company, which currently processes over $665 million in annual revenue, continues to demonstrate strong growth potential according to InvestingPro data.
The collaboration between Intermex and Amigo Paisano dates back to 2019, with Amigo Paisano leveraging Intermex's advanced technology and extensive payout network to serve the Latino community. This move is seen as a strategic step for Intermex to bolster its digital offerings and solidify its footprint in Central America. The company's strong financial position is evident in its healthy current ratio of 1.8, indicating solid liquidity to support expansion efforts.
Marcelo Theodoro, Intermex's Chief Product, Marketing & Digital Officer, stated that incorporating Amigo Paisano's reputable brand is pivotal in their quest to enhance digital services and their commitment to providing accessible remittance services tailored to Latino families' needs.
Sergio Sagastume, CEO of Amigo Paisano, expressed that the integration with Intermex is a significant milestone, emphasizing the deep trust their brand has established within the Latino community and the potential to improve services and deliver greater value to customers.
This acquisition is part of Intermex's broader strategy to expand market leadership through strategic partnerships and acquisitions. The company previously extended its global reach by acquiring Envios de Valores La Nacional Corp. in November 2022 and entered the European market in April 2023 through the acquisition of LAN Holdings, Corp.
While financial details of the transaction were not disclosed, Intermex anticipates an incremental adjusted EBITDA of between $3.5 million and $5 million in 2025, adding to its current EBITDA of $113.7 million. Intermex, founded in 1994, enables consumers to send money from North America and Europe to over 60 countries through its digital and retail networks. Trading at an attractive P/E ratio of 11.6, InvestingPro analysis suggests the stock is currently undervalued, with 5 analysts recently revising their earnings expectations upward. For detailed insights and 8 additional ProTips about IMXI's growth potential, investors can access the comprehensive Pro Research Report available on InvestingPro.
The statements in this article are based on a press release statement and contain forward-looking statements regarding the expected benefits of the acquisition, including enhanced digital coverage and expanded presence in Central America. Investors are cautioned not to place undue reliance on these forward-looking statements, which are subject to risks, uncertainties, and other factors that could cause actual results to differ materially.
In other recent news, International Money Express, also known as Intermex, has reported substantial growth in its third-quarter results. The company's GAAP EPS rose to $0.53, a 29.3% increase year-over-year, while its adjusted EBITDA reached a record high of $33.9 million, marking a 7% rise. This robust performance is attributed to a significant growth in digital revenue, which surged by over 66% year-over-year, contributing to a total revenue of $171.9 million for the quarter.
In addition, the company announced a strategic review aimed at enhancing shareholder value. BMO Capital Markets adjusted its outlook for Intermex shares, increasing the price target from $27.00 to $30.00 and reiterating its Outperform rating. This revision comes after the company's impressive performance in its retail operations, despite macroeconomic challenges and a shift towards digital services.
Furthermore, Intermex is aggressively buying back its shares, with a buyback yield of over 10%. BMO Capital Markets has raised its out-year estimates by 3-4%, leading to the new price target. These recent developments are part of the company's broader aim to balance retail and digital operations while focusing on profitability and digital investments.
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