Western Union has agreed to acquire International Money Express Inc. (Intermex) for about $500 million in cash, strengthening its foothold in the high-growth remittance markets of Latin America and the Caribbean.

The U.S.-based money transfer giant announced Sunday it will pay $16 per Intermex share — a premium of more than 70 percent over the smaller firm’s closing price of $9.28 on Friday — according to a Reuters report.

Western Union, one of the world’s largest providers of cross-border payment services, said the acquisition is expected to add over $0.10 to its adjusted earnings per share in the first full year after the deal closes.

The company said the move aligns with its strategy to expand in “historically high-growth Latin America geographies,” where demand for remittance services remains robust.

Intermex, which specializes in money transfers to Latin America and the Caribbean, recently announced it will stop issuing quarterly guidance starting in the first quarter of 2025. It also lowered its full-year revenue and profit forecasts, citing economic uncertainty.

The transaction is subject to regulatory approvals and other customary closing conditions.