Western Union Acquires Custom House For $370M

ENGLEWOOD, Colo. (AP) — Western Union Co. said Thursday it as agreed to acquire Canadian firm Custom House Ltd. for $370 million in cash.

The deal, which expected to close in the third quarter, will expand the money transfer agent's global payments capabilities.

Custom House, owned by Boston-based private equity firm Great Hill Partners, is an independent provider of business-to-business international payments. Once the acquisition is complete, the company will continue to operate under its existing management in Canada, Western Union said. It will become part of the Western Union Global Payments segment.

The acquisition is expected to shave Western Union's earnings per share in 2009 by about 1 cent. Last month the company said it expected to earn between $1.18 per share and $1.28 per share for the year. Adjusted to eliminate currency fluctuations, it projected a profit of $1.16 to $1.26 per share. Analysts expect, on average, income of $1.26 per share for 2009, according to Thomson Reuters. Western Union said its April guidance did not include the impact from the acquisition.

Shares of Western Union rose 13 cents to $17.79 in morning trading.