Western Union Buys 15% Stake In Saudi Telecom's Stc Pay For $200 Mln

(RTTNews) - Western Union Co (WU) announced that it has agreed to acquire 15 percent stake in Saudi Digital Payments Company, or stc pay, a unit of Saudi Telecom Co., for $200 million. The transaction is expected to close in the first quarter of 2021 and the proceeds of the deal will be used to finance stc pay's capital.

Saudi Telecom said it will inject 400 million Saudi riyals as additional capital stc pay and a further 802 million Saudi riyals if it manages to obtain a digital banking license.

stc pay is a unit of Saudi Telecom Co. focused on digital payments and financial technology services has a strong base of over 4 million customers and an established regional brand in the fast-growing digital wallet market.

Western Union currently partners with stc pay, providing money transfer services that allow stc pay's users to send money from its app to 200+ countries and territories in 130+ currencies through Western Union's extensive global network of accounts, wallets, cards and retail.