Western Union Buys 15 Percent Stake in STC Group

World’s largest money transfer company Western Union has acquired a 15 percent stake in the digital payment unit of Saudi Arabia’s telecommunications giant STC Group for $200 million.

World’s largest money transfer company Western Union has acquired a 15 percent stake in the digital payment unit of Saudi Arabia’s telecommunications giant STC Group for $200 million.

In a Monday statement, the Saudi telecommunications operator said that the acquisition of STC pay, which values the company at $1.3 billion, will finance its capital and support long-term expansion plans.

STC Group chairman Mohammed bin Khalid Abdullah Al Faisal said that the investment reflected the company’s position as a “digital enabler”. He also pointed out that the deal with Western Union created the first “Saudi unicorn and the first fintech unicorn in the Middle East.”

According to a Business Insider report the STC Group hired banks to arrange a potential initial sale of shares in its product and services development arm Solutions by STC last month. 

The report pointed out that reducing dependence on cash is part of Saudi government efforts to modernize the economy of the country as soon as possible.


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