Custom House ULC

Custom House ULC emerged as a key player in the foreign exchange market, providing international payment solutions tailored for small to mid-sized enterprises (SMEs). The company was founded in 1992 by Peter Gustavson, an entrepreneur with a background as a chartered accountant. Gustavson's entrepreneurial journey began at a young age and continued with the establishment of his own accounting firm before he identified an opportunity in the currency exchange sector. He started the company in Victoria, B.C., initially as a small kiosk in the historic Custom House building, targeting the tourist market.

The business quickly pivoted from a retail focus to servicing the corporate foreign exchange needs of local businesses, which catalyzed its significant growth. This strategic shift led to an expansion across Canada, followed by entries into the United States in 1997 and Australia in 2000. By 2009, Custom House was handling billions in transactions annually, operating in multiple countries including Canada, the US, the UK, Italy, Singapore, Australia, and New Zealand, and serving over 40,000 clients. The company's business model centered on providing services like wire transfers, foreign currency drafts, and forward exchange contracts, establishing itself as a significant non-bank entity in the forex market. Revenue was generated from the exchange of currencies and by offering risk management products like forward contracts to help businesses manage currency fluctuations.

A major milestone in the company's history was the acquisition by The Western Union Company in September 2009 for approximately US$370 million. This all-cash transaction was part of Western Union's strategy to enter the growing business-to-business cross-border payments market. Following the acquisition, Custom House became part of the Western Union Global Payments segment and was eventually rebranded as Western Union Business Solutions. Peter Gustavson, the founder, departed from the company post-acquisition. Prior to the sale, in 2006, Custom House had secured a substantial equity investment from Great Hill Partners to fuel its geographic expansion and potential acquisitions.

Keywords: foreign exchange, international payments, SME financial services, currency exchange, cross-border payments, wire transfers, risk management, forward contracts, forex solutions, business payments, Peter Gustavson, Western Union Business Solutions, corporate forex, global payments, payment processing, currency drafts