Madison Dearborn Partners buys MoneyGram for $1.8bn

Chicago-based private equity firm Madison Dearborn Partners has acquired MoneyGram International, a digital P2P payments company, in a $1.8bn deal.

The teams of the deal see Madison acquire all outstanding shares of MoneyGram for $11 apiece, which represents a premium of around 50% to MoneyGram’s closing stock price on December 14 2021.

Alongside the acquisition, Madison will refinance all of MoneyGram’s outstanding debt, which amounts to around $799m, as of the end of December 2021.

MoneyGram is a mobile-based P2P payments platform that helps users send money from the US, pay bills and more.

MoneyGram Chairman and CEO Alex Holmes said, “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.

“This transaction provides exciting opportunities for our dedicated MoneyGram team and partners, and I’m incredibly excited about the path ahead.”

Following the close of the deal, MoneyGram will continue to operate under its brand and be led by its existing team. It will also keep its Texas headquarters.

Earlier this year, MoneyGram picked up a minority stake in US-based cryptocurrency cash exchange service Coinme. This was an extension to a partnership formed in May 2021, which had the goal of building a crypto-to-cash model through a connection between bitcoin and fiat currency.

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