Grupo Financiero Banorte of Monterrey, Mexico, is extending its reach in the U.S. remittance market.
The $17 billion-asset company has agreed to pay $20 million for UniTeller Holdings Inc. of Rochelle Park, N.J., which operates a network of 1,000 independent collection agents in 41 states and has correspondent relationships in 18 Latin American countries and the Philippines.
Banorte said UniTeller also has the licensing authority to offer family remittance service directly to consumers in the United States; a technology platform that could support significant growth; and U.S. patent rights to use a card for remitting funds.
The deal was announced Thursday, and Banorte said it is expected to close in the fourth quarter. So is Banorte's $259 million deal, announced in January, to buy a 70% stake in the $1.1 billion-asset Inter National Bank of McAllen, Tex., with an option to buy the rest.
The Mexican company has about 5% of the $20 billion U.S. remittance market, mainly through partnerships with Bank of America Corp. and Wells Fargo & Co., but can only receive money. The two deals would allow it to send money to U.S. accounts as well.
Buying UniTeller will position Banorte better "in the remittances value chain, allowing it to serve as a collector, a transmitter, and a payer of money transfers," said Luis Pena Kegel, the banking company's chief executive, in a press release.
