EXCLUSIVE Madison Dearborn buyout firm approaches MoneyGram with sources of takeover offers


Dec. 15 (Reuters) – Private equity firm Madison Dearborn Partners LLC has approached MoneyGram International Inc (MGI.O), one of the world’s largest money transfer companies, with an acquisition offer, have two people familiar with the matter said Wednesday.

The Dallas-based company has become an acquisition target as intense competition in the industry from digital competitors such as Remitly Global Inc (RELY.O) and Revolut has weighed on its ability to capitalize in the growing payments market. and remittances.

There is no certainty that MoneyGram, which has a market value of around $ 700 million and net debt of $ 800 million, will agree to a deal, the sources said. The company has engaged with potential buyers on several occasions over the past few years, including in 2019, Reuters reported.

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Madison Dearborn declined to comment, while MoneyGram spokespersons did not immediately respond to requests for comment.

MoneyGram, which its website has served 150 million people over the past five years, has focused on digital payments as an area of ​​growth. In October, he announced a blockchain partnership that leverages fintech company Circle’s USD Coin, one of the world’s fastest growing digital dollar currencies.

A $ 1.2 billion deal for Chinese firm Ant Financial to acquire MoneyGram was blocked by the United States in January 2018 over national security concerns. MoneyGram stocks took a hit, but have since recovered. They are up 28% since the start of the year against an 18% increase in interest on the Nasdaq Composite.

The company reported third-quarter operating income of $ 26.8 million, up from $ 36.6 million a year ago, amid rising transaction expenses.

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Reporting by Greg Roumeliotis in New York Additional reporting by Chibuike Oguh in New York Editing by Nick Zieminski

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