MoneyGram, a leading global money transfer and payment services company, has undergone a significant transformation with the announcement of a $1.8 billion deal.
The deal was made possible through a partnership between MoneyGram and Ant Financial, an affiliate of the Chinese e-commerce giant Alibaba.
In 2021, Ant Financial acquired a 52% stake in MoneyGram for $1.8 billion.
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Acquisition Details
MoneyGram was acquired by a private equity company for $11 per share in an all-cash deal.
The acquisition was completed in a deal that will see MoneyGram delisted from Nasdaq.
Alex Holmes, Chairman and CEO of MoneyGram, sees this as a transformative chapter for the organization.
MoneyGram has over 150 million customers globally in 135 countries.
The company was acquired after suffering heavy debt and increasing competition from rivals like Western Union and Remitly Global.
China's Ant Financial had quoted $1.2 billion for MoneyGram, but the deal fell through reportedly due to national security concerns by the US government.
Global Regulatory Approval
Global Regulatory Approval is a significant milestone for any company, and MoneyGram's approval by global regulators is no exception. In December, MoneyGram announced that all international money transmission regulators, except for one, had given their green light to the takeover.
The Financial Conduct Authority (FCA) in the UK and the National Bank of Belgium, where MoneyGram holds its European licenses, were among the regulators that approved the deal. This is a major endorsement of the company's financial health and stability.
BofA Securities and Vinson & Elkins LLP played key roles in the approval process, serving as financial advisor and legal counsel for MoneyGram, respectively. Goldman Sachs acted as the lead financial advisor to the company behind the takeover, MDP.
Latham & Watkins LLP, Kirkland & Ellis LLP, and Covington & Burling LLP also provided legal counsel for the deal, further solidifying the regulatory approval.
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Deal Summary
Madison Dearborn Partners acquired MoneyGram in a $1.8 billion all-cash transaction.
The deal includes a 30-day "go-shop" period expiring on March 16, 2022, allowing MoneyGram to seek alternative proposals.
MoneyGram will become a private company if the deal closes, enabling accelerated innovation and the evolution of their cross-border payment technologies.
The leading Chicago-based private equity firm, Madison Dearborn Partners, will pay $11 per share, representing a 50% premium to the stock's closing price on December 14, 2021.
BofA Securities Inc. is the exclusive financial advisor to MoneyGram, while Goldman Sachs & Co. LLC acts as the leading financial advisor to Madison Dearborn Partners.
The deal will refinance $799 million of MoneyGram's debt, provided by Goldman Sachs Group Inc., Deutsche Bank AG, and Barclays Plc.
The acquisition has a LTM EV/EBITDA of 5.49x.
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Frequently Asked Questions
Who is the CEO of MoneyGram?
The CEO of MoneyGram is Anthony Soohoo. He was recently appointed to this position.
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