According to reports in PE Hub on Wednesday (November 15), Western Union and FLEETCOR are in serious talks and would go through an agreement to completely sell the WU’s business payments operations. The deal, if it goes through, could fetch nothing less than $600 million for the B2B payments operations. As per three unnamed sources Citi is advising on the deal.
Though unconfirmed, the deal would not come entirely as a surprise. In September, Deutsche Bank Analyst Ashish Sabadra said FLEETCOR is a prospective purchaser of Western Union’s business.
This purchase would augur well for Ripple’s cross-border tools like xVia, xCurrent, or xRapid as it would be a step closer to use the tools.
Cambridge global payments to use xRapid
1st March 2018, Ripple (XRP) announced that Cambridge Global Payments, a subsidiary of FLEETCOR Technologies, has decided to launch a pilot program that purposely intends using XRP in cross-border payment flows through xRapid.
Cambridge handles around $20 billion in international transactions every year and has over 13,000 clients across the globe.
Strengthening the B2B operations of FLEETCOR
Cambridge Global Payments is a subsidiary of FLEETCOR Technologies, which it acquired last year. This positions the firm as an expanding B2B payments company. It also adds sense to the further acquisition of Western Union business payments assets. Sabadra believes the acquisition of Western Union business payments assets is a step forward for the payment company.
A Bloomberg report had earlier stated that Western Union was moving to sell the operations, which provides cross-border B2B payments services. At that time a company representative of Western Union had said that it does not publicly comment on possible mergers and acquisitions.
However, the firm’s Chief Financial Officer Rajesh Agrawal at a banking conference at the time said, “We certainly need to evaluate other potential opportunities for that business. Our goal is going to be to maximize the value of that business, whether it’s in our hands or someone else’s.”
Ripple firmly at #2
The markets have been regaining its strength in fits and starts. Many coins are beginning to go green and dropping to become red.
Amidst this, while many were plunging massively, losing big from their market cap, XRP didn’t lose much from its market cap as compared to the like of Ethereum (ETH). It seized the opportunity in toppling Ethereum and taking its second spot. XRP has since been the second position while Ethereum maintains the third position.