According to persons familiar with the situation, private equity companies Madison Dearborn Partners LLC, Siris Capital Group LLC, and Advent International Corp. have submitted rival proposals to buy MoneyGram International Inc (MGI.O) for $1.8 billion.
After Madison Dearborn made an acquisition offer of $10.50 per share in cash, the Dallas-based company started to evaluate its options, the sources claimed. According to the sources, Advent had also indicated an interest in purchasing the business last year.
According to the sources, MoneyGram set a deadline of January 24 for receiving legally binding purchase proposals and anticipates deciding whether to sell itself soon. The company has nearly $800 million in debt.
MoneyGram, one of the biggest money transfer businesses in the world with a market value of $850 million, is not clear on how much it will ultimately cost.
Requests for comment from representatives of MoneyGram, Madison Dearborn, Siris, and Advent did not immediately elicit a response. As fierce competition from digital rivals like Remitly Global Inc and Revolut has weighed on MoneyGram’s capacity to benefit from the expanding market for payments and remittances, the company is now a target for takeovers.
MoneyGram has been concentrating on digital payments as a potential development sector.
According to its website, 150 million people have used its services in the last five years. It revealed blockchain cooperation in October that relies on Circle’s USD Coin, one of the fastest-rising dollar digital currencies in the world. It came up with a new agreement earlier this month with the Japanese financial technology company Digital Wallet Corp.
On national security grounds, the United States vetoed a $1.2 billion agreement in January 2018 for China’s Ant Financial to buy MoneyGram. Shares of MoneyGram suffered as a result, but they have subsequently rebounded. Compared to a 2 percent increase in the Nasdaq Composite index, they have increased 43 percent in the past year.