Regulatory approval, Intermex stock surges 23% on acquisition approval update

International Money Express (NASDAQ: IMXI) shares surged 23% Friday after Western Union (NYSE: WU) and Intermex provided an update on regulatory approvals for Western Union’s pending acquisition of Intermex.

The companies announced they received regulatory approval from the New York State Department of Financial Services for the transaction. In connection with the approval, Western Union made certain commitments to the NYDFS regarding remittance services and locations in New York following the acquisition.

However, on the same day, Western Union and Intermex received a letter from the California Department of Financial Protection and Innovation suspending the approval extension previously granted on July 31. The DFPI stated the suspension is based on a need to further review the transaction due to the six months that have passed since approval was originally granted, and to examine the impact on operations in California.

Western Union and Intermex said they intend to engage promptly with the DFPI to address its questions and seek reinstatement of the approval as soon as practicable. The companies remain committed to completing the transaction and intend to close promptly after the reinstatement of the DFPI approval, subject to satisfaction or waiver of remaining customary closing conditions.