(RTTNews) -  Tuesday, money transfer and bill payment services provider Western Union Co. (WU: News ) said it has completed the acquisition of international business-to-business payments provider Custom House, which processes payments originating in seven countries for payout in 120 countries. Custom House has an annualized revenue run rate of $100 million and the company focuses mainly on cross-border payments for small to mid-sized enterprises, or SMEs.

According to Western Union, the acquisition will introduce Western Union to a new market, significantly expanding its service offerings and customer base. Western Union estimates that the SME cross-border payments market generates global revenue at least as big as the consumer-to-consumer money transfer market.

Christina Gold, president and chief executive officer of Western Union said, "Custom House opens up a world of opportunity for its customers. It enables small and medium-sized businesses to operate on a global scale, simplifying international payment transactions and managing the risks associated with foreign exchange. We believe that leveraging the brand, global footprint and financial strength of Western Union will enable Custom House to accelerate its international expansion and growth."

"Custom House has a proven operating model, seasoned management team and differentiating technology," said Ranjana Clark, president, Global Business Payments and head of Global Strategy, Western Union.
Custom House currently serves more than 40,000 clients through its multi-channel delivery system and makes payments in over 150 currencies.

Western Union noted that Custom House will be re-branded under the Western Union umbrella of services, but will continue to be headquartered in Victoria, British Columbia under the leadership of existing management team.

WU closed Tuesday's regular trading on the NYSE at $17.71, down $0.33 or 1.83%.

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by RTT Staff Writer

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