Western Union’s sale of its business-payments unit has hit the final round, three sources said.
Citi is advising on the process, two of the sources said. Western Union’s B2B unit could fetch as much as $600 million, the people said.
The Western Union business helps small and midsized businesses in the U.S. carry out transactions with overseas suppliers in local currencies, said Bloomberg, which reported a possible sale of the business in September.
The unit became a financial burden for Western Union after a change in the tax code affected payments and profits that U.S. companies make overseas, the story said.
FleetCor Technologies is vying for the Western Union unit, two sources said. GTCR was also mentioned as interested in the business, one person said. It’s unclear whether either is leading.
Both parties are well-known payments/fintech investors. Fleetcor is the Peachtree Corners, Georgia, provider of specialized payment products and services, including fleet cards, food cards and corporate lodging discount cards.
Publicly traded Fleetcor, which has a $17.38 billion market cap, acquired a minority stake in Qui! Group, an Italian food card provider, in 2017.
Fleetcor that year also closed the $690 million buy of Cambridge Global Payments and acquired Comdata in 2014 for $3.45 billion in 2014.
GTCR declined comment. Executives for Western Union, Fleetcor, and Citi could not immediately be reached for comment.
Action Item: Contact FleetCor CEO Ronald Clarke at +1 800-877-9019