Update on Intermex Process

研报英文原文证据摘录

Update on Intermex Process

We believe the DFS approval relates primarily to money- framework

** = Based on consensus methodology

transmitter change-of-control which is separate from formal antitrust review, e = Morgan Stanley Research estimates

though the DFS likely retains broader public-interest discretion under New York law.

Importantly, the merger agreement contains an automatic extension provision; if the

only outstanding item is regulatory approval, the initial termination date

automatically extends to November 10, 2026 (from August 10).

Timing matters because WU’s '26 guidance is built around a 2Q close,

introducing risk to Street ests if deal timing is pushed out. WU's '26 outlook calls

for GAAP revenue growth of 5%–8% (Cons at +7%) and adjusted EPS of $1.75–$1.85

(Cons at $1.76), both of which incorporate Intermex synergies and revenue

contributions for the second half of the year (the outlook assumes Intermex closes

by June 30). The outlook also incorporates meaningful efficiency benefits ramping in

2H, supported by Intermex cost savings, lower vendor and labor costs, and AI-driven

process optimization. If Intermex doesn't close by 2Q, WU would lose a portion of

expected stub-period revenue, push out synergy capture, and have less offset

against the noisy 1Q print, which included higher than expected FX losses, vendor-

incentive timing, and higher strategic-partner costs. Meanwhile, after several years

of cost savings work, we think executing on incremental savings within legacy WU

will be challenging going forward.

Our estimates do not incorporate Intermex, and remain unchanged. Importantly,

we had not previously embedded Intermex into our published estimates as the deal Morgan Stanley does and seeks to do business with