Madison Dearborn Buys MoneyGram in $1.8 Billion Deal
  • Madison Dearborn Partners has agreed to acquire MoneyGram in a $1.8 billion deal.
  • The deal will offer shareholders $11 per share and will make MoneyGram a privately-held company.
  • MoneyGram anticipates the acquisition will help it advance digital growth and compete against smaller fintechs.

MoneyGram, an 82-year-old fintech, announced today it has agreed to be acquired by private equity investment firm Madison Dearborn Partners (MDP) in a $1.8 billion deal. The transaction is expected to close in the fourth quarter of this year.

When the deal closes, MoneyGram shareholders will receive $11 per share. In addition, MoneyGram, which is currently listed publicly on the NASDAQ under the ticker MGI, will no longer be listed on a public exchange. Logistically, MoneyGram will continue to operate under its own brand. Company CEO Alex Holmes and the existing leadership team will continue to lead MoneyGram from the company’s headquarters in Dallas, Texas to continue to serve its 150 million customers.

Holmes anticipates the deal will not only deliver value to shareholders, but will also help MoneyGram as it seeks to advance its digital growth. “MoneyGram has undergone a rapid transformation over the last several years to expand our digital capabilities and adapt to the evolving needs of our customers. By partnering with MDP and becoming a private company, 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, while leveraging our global platform for new customers and use cases.”

The move will place MoneyGram in a better position to compete with the onslaught of fintechs in the cross-border payments arena. And in today’s increasingly decentralized economy, this competition goes beyond cross-border payments companies of the last decade such as Azimo, Wise, Visa’s CurrencyCloud, and Payoneer. Looking ahead, MoneyGram will need to deepen its crypto roots.

The Dallas-based company dipped its toe in the crypto waters in 2018 when it initiated a partnership with Ripple to leverage xRapid for remittance payments. And last fall, MoneyGram began collaborating with Stellar to enable consumers using Circle’s USDC stablecoin to receive cash funding and payout in local currency.

“We are looking forward to applying our substantial experience growing digital businesses and deep payments knowledge to help MoneyGram further strengthen its market-leading cross-border capabilities and enhance its digital platform,” said MDP’s Managing Director Vahe Dombalagian.

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