MoneyGram International Inc, a global money transfer platform, has announced today that it will be acquired by Madison Dearborn Partners, a leading private equity firm based in Chicago. MoneyGram said that the deal is being negotiated after it enters an agreement with Madison Dearborn Partners.
Funds affiliated with Madison will acquire MoneyGram for $11 per share or around $1.8 billion in total.
The deal will now await approval from shareholders and regulators, and it is expected to close in the last three months of 2022.
Alex Holmes, the Chairman and CEO of MoneyGram, highlighted why the firm is seeking the acquisition . The executive stated that the deal will deliver immediate and compelling value to shareholders of MoneyGram and enable the company to accelerate the advancement of its digital growth strategy and position its business for continued growth and expansion.
Additionally, Holmes elaborated: “By partnering with MDP and becoming a private company, we will have greater opportunities to innovate and transform MoneyGram to lead the industry in cross-border payment technology and deliver a more expansive set of digital offerings, while leveraging our global platform for new customers and use cases. This transaction provides exciting opportunities for our dedicated MoneyGram team and partners, and I'm incredibly excited about the path ahead."
Meanwhile, Vahe Dombalagian, the Managing Director on MDP's Financial and Transaction Services team, added: "We are looking forward to applying our substantial experience growing digital businesses and deep payments knowledge to help MoneyGram further strengthen its market-leading cross-border capabilities and enhance its digital platform. Alex and his team have transformed MoneyGram over the past few years, and we are excited to help them execute the important work ahead to continue evolving and growing MoneyGram's business."
Expanding Digital Network and Mobile Wallet Capabilities
MoneyGram has continued to embrace growth and partnerships with major fintech firms to enable customers to seamlessly send money directly to mobile wallets and bank accounts globally through its platform. Last month, MoneyGram made a strategic investment in Coinme, a crypto-cash exchange firm, to enable Coinme and its customers to sell and purchase Bitcoin for cash.
In October last year, MoneyGram partnered with the Stellar Development Foundation, to enable cash funding and payouts in local currency for consumers using USDC stablecoin, as well as near-instant backend settlement capabilities. The partnership provides customers with the ability to seamlessly convert USDC to cash, or cash to USDC. This increases the use and liquidity of digital assets while enabling more consumers to participate in the digital economy.
In March last year, MoneyGram launched a new business line that enables other firms to access its global money transfer network through its technology and API-driven infrastructure. The service enables companies to leverage MoneyGram's core capabilities to meet their various business needs and quickly add services and scale.
