Private Equity firm Madison Dearbon Partners is set to acquire money transfer platform MoneyGram in a $1.8B deal, according to a news release by MoneyGram on Tuesday.

  • The company stated that funds affiliated with Madison would acquire MoneyGram for $11 per share, accounting for a premium of 50% to the stock’s closing price on December 14.
  • Alex Holmes, MoneyGram Chairman and CEO, stated that they were excited to enter into a transaction with MDP to deliver immediate and compelling value to shareholders and promote the advancement of their digital growth strategy.
  • Holmes further stated that the deal would provide greater opportunities to innovate and transform MoneyGram to lead the industry in cross-border payment technology and deliver an expansive set of digital offerings.

The deal also includes a 30-day “go-shop” period set to expire on March 16, during which MoneyGram would be allowed to evaluate alternate bids. MGI up +18.66%, Pre-market trading.