Buyout firm Madison Dearborn to take MoneyGram private in $1.8 bln deal (updated)

Remitly Global

15/02/2022 16:07

Feb 15 (Reuters) - Private equity firm Madison Dearborn
Partners said on Tuesday it would buy MoneyGram International
Inc  MGI.O  in a $1.8 billion deal, seeking to turn around the
fortunes of the debt-laden money transfer platform buffeted by
stiff competition.
    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 Inc  RELY.O  and Western Union Co  WU.N . 
    MoneyGram had initially received a $10.50 per share offer
from Madison, as well as competing bids from Siris Capital Group
LLC and Advent International Corp, Reuters reported last month.
 urn:newsml:reuters.com:*:nL1N2U517F
    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 U.S.
government's concerns over national security.
    Madison will refinance MoneyGram's outstanding debt after
the deal closes, which is expected in the fourth quarter of this
year.
    Goldman Sachs & Co, Deutsche Bank Securities Inc and
Barclays provided debt financing for the deal, the companies
said.

 (Reporting by Niket Nishant in Bengaluru; Editing by Aditya
Soni)
 ((Niket.Nishant@thomsonreuters.com;))