MoneyGram from Dallas taken in a private deal

MoneyGram from Dallas taken in a private deal

Dallas-based Moneygram and Chicago-based Madison Dearborn Partners have entered into an agreement for the former’s acquisition of the latter according to a Financier Worldwide article from February 17 which reports, 


“Private equity firm Madison Dearborn Partners has agreed to take MoneyGram International private in a deal worth $1.8bn.


Madison Dearborn will acquire all outstanding shares of MoneyGram for $11 per share in an all-cash transaction. The purchase price represents a premium of approximately 50 percent to MoneyGram’s closing stock price on 14 December 2021, the last trading day prior to media speculation regarding a possible deal.


The transaction, which is expected to close in the fourth quarter of 2022, subject to customary closing conditions and regulatory approval, will see Madison Dearborn refinance MoneyGram’s outstanding debt, which was $799m as of 31 December 2021. Madison Dearborn has secured committed debt financing for the transaction from Goldman Sachs & Co. LLC, Deutsche Bank Securities Inc. and Barclays.”


Expectations are flowing in as the agreement will involve further developments and all the while, all employees will be taken care of accordingly according to a Dallas Morning News article from February 15 which reports, 


“We are excited to enter into this transaction with MDP, which will deliver immediate and compelling value to shareholders and enable us to accelerate the advancement of our digital growth strategy,” MoneyGram chairman and CEO Alex Holmes said in a statement Tuesday.


As part of the deal, Holmes will continue to lead MoneyGram and the company’s headquarters will remain in Dallas. MoneyGram had 2,269 employees as of the end of 2020, with more than half working outside the U.S.


In a letter to employees, Holmes wrote: “You may be wondering what this means for you. … MDP recognizes the importance of the MoneyGram team to our collective success. In fact, the strength of the team is one of the reasons they are so excited to partner with us. MDP is focused on retaining MoneyGram’s talented employees and we expect many new career developments and advancement opportunities for our team as a result of this transaction.”


His letter also emphasized how going private should allow for more innovation and a “more expansive set of digital offerings.”


The agreement also holds that the Chicago firm will take care of the MoneyGram’s outstanding balances and debts as far as December 31.