Shares of Money Express (IMXI) are navigating a pivotal moment, influenced by a significant acquisition offer and a recent earnings report that presented a mixed picture. The stock concluded Friday’s session at $14.48, marking a slight decline of 0.62%. Trading activity remained robust with 394,188 shares changing hands, as the price fluctuated between $14.41 and $14.70 throughout the day.
Acquisition Offer from Western Union
A defining development for the company emerged on August 10, 2025, when Western Union unveiled a planned acquisition valued at $500 million. The deal proposes a cash offer of $16.00 per share, representing a substantial premium over the current trading price. Pending the necessary regulatory clearances, the transaction is anticipated to finalize by mid-2026. Western Union aims to leverage this move to bolster its footprint in North America and connect with new digital-savvy customer segments. For Money Express, the agreement promises access to markets beyond its established Latin American corridors.
Second Quarter Performance Falls Short
The market’s reaction is also shaped by the company’s Q2 financial results, released in early August, which failed to meet expectations in key areas:
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- Revenue: Reported at $161.13 million, this figure not only fell 1.09% short of analyst forecasts but also declined compared to the $171.53 million generated in the prior-year period.
- Adjusted EPS: The earnings per share of $0.51 did manage to surpass the estimated $0.49.
Despite the earnings beat, the weaker top-line performance and the year-over-year revenue contraction highlighted the intense competitive pressures within the transaction services sector.
Strategic Moves Amidst Analyst Caution
In a strategic effort to drive future growth, Money Express announced a partnership with Zeepay, set to commence on August 26, 2025. This initiative is designed to extend its money transfer services into the African market. However, this expansion has yet to alleviate the skepticism among some market observers. Reflecting this cautious stance, analysts at Zacks Research downgraded the stock to a “Strong Sell” recommendation at the end of August. The firm currently assigns Money Express a Rank #4 (Sell) within its industry coverage.
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