Chicago-based private equity firm Madison Dearborn Partners (MDP) has completed its acquisition of MoneyGram, an American cross-border peer-to-peer payments company, slightly over a year after announcing the deal.
The funds affiliated with the private
equity company completed the all-cash acquisition for
$11 per share in a deal that turned MoneyGram private, pending its delisting
from Nasdaq.
“Completing the
transaction with MDP marks the beginning of a transformative new chapter for
the organization,” commented Alex Holmes, the Chairman and CEO of
MoneyGram. “With MDP’s support, MoneyGram is uniquely positioned to
accelerate our growth strategy and expand our network to reach more consumers
worldwide.”
With more than 150
million customers globally in 135 countries, MoneyGram became a target of
acquisition after suffering heavy debt and increasing competition from rivals
like Western Union and Remitly Global.
Some of the potential buyers
that expressed interest in taking over the remittance firm include China’s Ant
Financial, which had quoted $1.2 billion. However, the deal fell through reportedly due to national security concerns by the US government.
Approval by Global Regulators
Last December, in a press release, MoneyGram said that
except for one, all the international money transmission regulators,
including the Financial
Conduct Authority (FCA) in
the UK, and the National Bank of Belgium, where MoneyGram hold its European
licenses, had approved the takeover.
Similarly, in the US,
all the applicable US States and territories agreed to the deal and the marketing period commenced before January 3, 2023, according to the merger terms.
BofA Securities and
Vinson & Elkins LLP acted as the financial advisor and legal counsel for MoneyGram, respectively, while Goldman Sachs acted as the lead financial
advisor to MDP. Furthermore, Latham & Watkins LLP, Kirkland & Ellis LLP and
Covington & Burling LLP provided legal counsel for the deal.
In other news, Finance Magnates reported in February that the United States started to disburse up to $115 million in compensation to 38,889 victims of fraudulent
schemes committed through MoneyGram. The disbursement happened 12 years after MoneyGram entered into a deferred prosecution agreement with the US Department of Justice.
Revolut hits 30M users; crypto trading on TP ICAP; read today’s news nuggets.
Chicago-based private equity firm Madison Dearborn Partners (MDP) has completed its acquisition of MoneyGram, an American cross-border peer-to-peer payments company, slightly over a year after announcing the deal.
The funds affiliated with the private
equity company completed the all-cash acquisition for
$11 per share in a deal that turned MoneyGram private, pending its delisting
from Nasdaq.
“Completing the
transaction with MDP marks the beginning of a transformative new chapter for
the organization,” commented Alex Holmes, the Chairman and CEO of
MoneyGram. “With MDP’s support, MoneyGram is uniquely positioned to
accelerate our growth strategy and expand our network to reach more consumers
worldwide.”
With more than 150
million customers globally in 135 countries, MoneyGram became a target of
acquisition after suffering heavy debt and increasing competition from rivals
like Western Union and Remitly Global.
Some of the potential buyers
that expressed interest in taking over the remittance firm include China’s Ant
Financial, which had quoted $1.2 billion. However, the deal fell through reportedly due to national security concerns by the US government.
Approval by Global Regulators
Last December, in a press release, MoneyGram said that
except for one, all the international money transmission regulators,
including the Financial
Conduct Authority (FCA) in
the UK, and the National Bank of Belgium, where MoneyGram hold its European
licenses, had approved the takeover.
Similarly, in the US,
all the applicable US States and territories agreed to the deal and the marketing period commenced before January 3, 2023, according to the merger terms.
BofA Securities and
Vinson & Elkins LLP acted as the financial advisor and legal counsel for MoneyGram, respectively, while Goldman Sachs acted as the lead financial
advisor to MDP. Furthermore, Latham & Watkins LLP, Kirkland & Ellis LLP and
Covington & Burling LLP provided legal counsel for the deal.
In other news, Finance Magnates reported in February that the United States started to disburse up to $115 million in compensation to 38,889 victims of fraudulent
schemes committed through MoneyGram. The disbursement happened 12 years after MoneyGram entered into a deferred prosecution agreement with the US Department of Justice.
Revolut hits 30M users; crypto trading on TP ICAP; read today’s news nuggets.
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- Source: https://www.financemagnates.com//fintech/payments/madison-dearborn-completes-moneygram-takeover/
