ATMs part of Travelex expansion strategy

According to a report in the Financial Times, the UK foreign exchange specialist will pay €17.5 million (U.S. $21.2 million) for GWK, the Belgian-Dutch group's specialist cash handling business, which operates 50 branches as well as an ATM network.

Travelex, best known for its airport kiosks, has expanded to provide services such as crossborder payments for businesses, money transfers and cash handling. Mainstream banks are increasingly outsourcing these labor-intensive activities to cut costs; Travelex now supplies foreign exchange for retail customers at banks including Barclays and Bank of New York.

"Crumbs for their table represent a very big feast for us," said Clive Kahn, chief financial officer of privately-held group Travelex, which has spent €60 million (U.S. $73 million) on acquisitions over the past two years.

Kahn said it intends to make further selective deals.

He said the international money transfer market -- driven by expatriate workers returning money home -- was growing 30 percent a year. Travelex competes in the sector with Western Union and former joint venture partner MoneyGram.

Kahn said the company was developing technology that would allow its expanding ATM network to be used for transfers, as well as expanding its own branch network.