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Madison Dearborn To Acquire MoneyGram For $1.8B

 |  February 15, 2022

On Tuesday, private equity firm Madison Dearborn Partners said it would buy MoneyGram in a $1.8 billion deal, seeking to turn around the fortunes of the debt-laden money transfer platform buffeted by stiff competition, reported Reuters. 

Funds affiliated with Madison will acquire MoneyGram for $11 per share, a 23% premium to the stock’s close on Monday. The offer is also 50% higher than the closing price of MoneyGram shares on Dec. 14, a day before media speculation on the deal.

The Dallas-based company, with nearly $800 million in net debt and more than 150 million customers, became an acquisition target as it struggled to capture the growing market for payments and remittances amid competition from rivals such as Remitly Global and Western Union.

It had engaged with potential buyers several times in the last few years, including in 2018 when its $1.2 billion sale to China’s Ant Financial fell through because of the US government’s concerns over national security.

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