Lindsay Golberg buys money transfer outfit

Lindsay Goldberg & Bessemer has agreed to buy Intermex Wire Transfer, gaining exposure to the remittance space as the US government mulls possible “guest worker” legislation.

New York’s Lindsay Goldberg & Bessemer is taking over a majority stake in Miami-based remittance company Intermex Wire Transfer. Terms of the deal were not disclosed.

Intermex is a money transfer company with a presence in 26 states throughout the US and 17 separate countries in Latin America.

The deal comes as the federal government is embroiled in a debate regarding the more than 11 million illegal immigrants. The Senate is considering a proposal that would institute a “guest worker” program for the population of non-US citizens estimated to be currently working in the country. If such legislation ever did pass, it would be a boon for companies such as Intermex.

We operate in a very attractive area. The US and Latin America corridor is one of the largest in the world. It was a $30 billion market in 2004 and continues to grow.

Carlos Rincon, president, Intermex Wire Transfer

The remittance industry has already experienced substantial growth from the passage of free-trade legislation throughout the Americas, and a number of private equity firms were able to profit on the trend. Great Hill Partners, based in Boston, just last year exited its investment in Vigo Remittance Corp. through a sale to First Data Corp., while Advent International, less than three years ago, scored on its sale of Latin America Money Services and its DolEx Dollar Express subsidiary in a $200 million deal to Global Payments Inc.

Carlos Rincon, the president of Intermex told PEO, “The deal comes at a time when there is a lot of noise out there for possible regulation, but I don’t see any legislation being passed that could affect this business in negative manner.”

However, he added that the potential for a guest worker program or other legislative possibilities could help fuel further industry growth.

“We operate in a very attractive area. The US and Latin America corridor is one of the largest in the world. It was a $30 billion market in 2004 and continues to grow,” he said.

With the investment from Lindsay Goldberg, the company anticipates expanding its international agent network and will also seek out further growth through acquisition.

Banc of America Securities served as advisor to Intermex, while law firm Bilzin Sumberg Baena Price & Axelrod served as legal counsel.