(Reuters) -Money transfer company Western Union said on Sunday it will acquire Intermex, a U.S. firm that focuses on payment transfers to Latin America and the Caribbean, for about $500 million in cash.

Western Union will pay $16 for each Intermex share, representing a premium of over 70% to Intermex's last close of $9.28 on Friday.

Western Union, among the world's top providers of money transfer services, said the deal was expected to add to its adjusted earnings per share by more than $0.10 in the first full year after close.

The company added that the deal would help it expand in the "historically high-growth Latin America geographies."

In the first quarter of 2025, Intermex said it will discontinue issuing quarterly guidance. The company also cut its annual forecasts for profit and revenue, citing economic uncertainty.

(Reporting by Harshita Meenaktshi in Bengaluru; Editing by Muralikumar Anantharaman)