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Madison Dearborn to Acquire MoneyGram In $1.8 Billion Deal -Breaking

by Mike Robinson

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© Reuters.

Sam Boughedda

Investing.com MoneyGram Int surged 20% Tuesday on news it will be acquired by Madison Dearborn Partners, a private equity firm based in Chicago.

Madison Dearborn will purchase MoneyGram at $11 per share, in an all cash transaction worth approximately $1.8 billion. This price is roughly half of MoneyGram’s Monday closing stock price, which was the day prior to talk about a potential transaction.

Madison Dearborn will also refinance company’s debts, currently at $799m at December 31st.

MoneyGram can initiate, solicite, encourage, and evaluate acquisitions for a period of 30 days. To enter into an improved proposal, MoneyGram can terminate Madison Dearborn agreements.

This transaction should close by the end of the fourth quarter.

Alex Holmes, MoneyGram CEO and chairman said, “We are thrilled to enter this transaction with MDP. This will deliver immediate, compelling value to shareholders, and allow us to accelerate our digital growth strategy.” 

He stated, “This transaction is the result of an extensive process by MoneyGram Board to improve shareholder value while positioning the business for continued growth”

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