BY Richard Summerfield
Private equity firm Madison Dearborn Partners has agreed to take MoneyGram International private in a deal worth $1.8bn.
Madison Dearborn will acquire all outstanding shares of MoneyGram for $11 per share in an all-cash transaction. The purchase price represents a premium of approximately 50 percent to MoneyGram's closing stock price on 14 December 2021, the last trading day prior to media speculation regarding a possible deal.
The transaction, which is expected to close in the fourth quarter of 2022, subject to customary closing conditions and regulatory approval, will see Madison Dearborn refinance MoneyGram’s outstanding debt, which was $799m as of 31 December 2021. Madison Dearborn has secured committed debt financing for the transaction from Goldman Sachs & Co. LLC, Deutsche Bank Securities Inc. and Barclays.
"We are excited to enter into this transaction with MDP, which will deliver immediate and compelling value to shareholders and enable us to accelerate the advancement of our digital growth strategy,” said Alex Holmes, chairman and chief executive of MoneyGram. “This transaction is the culmination of a thorough process by the MoneyGram Board to enhance shareholder value while positioning our business for continued growth and expansion."
“MoneyGram has undergone a rapid transformation over the last several years to expand our digital capabilities and adapt to the evolving needs of our customers,” he continued. “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.”
“MoneyGram is a leader in cross-border payments with one of the strongest brands and reputations in the industry, and we are excited to partner with Alex and his leadership team as they continue to lead MoneyGram's digital growth strategy,” said Vahe Dombalagian, a managing director at Madison Dearborn. “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.”
MoneyGram was almost acquired in 2017 by China’s Ant Financial but the $1.2bn agreement was blocked by the Committee on Foreign Investment in the United States.
News: Buyout firm Madison Dearborn to take MoneyGram private in $1.8 billion deal