DALLAS—MoneyGram International Inc., one of the largest money-transfer services in the U.S., is being acquired by Madison Dearborn Partners for about $1 billion in cash.
The private equity firm will pay $11 a share for MoneyGram, the companies said. Madison Dearborn also agreed to refinance $799 million of MoneyGram’s debt.
“MoneyGram has been a takeover target for years, as more people turn to online payments and away from old-school money-transfer services. Chinese financial-services conglomerate Ant Group Co. agreed to buy MoneyGram in 2017, but walked away after pushback from regulators. Rival Western Union Co. sought to acquire the company in 2020, people familiar with the matter said at the time,” Bloomberg reported.
The acquisition by Madison Dearborn will enable MoneyGram “to accelerate the advancement of our digital growth strategy,” MoneyGram CEO Alex Holmes, who will continue to lead the firm after the deal is completed, told Bloomberg. “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.”
The MoneyGram acquisition is expected to be completed in the fourth quarter.
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