News

Euronet angles to outbid Ant in MoneyGram acquisition

March 16, 2017

Euronet Worldwide Inc. has made a proposal to acquire MoneyGram International Inc. for $15.20 in cash per share of common stock and preferred stock on an as-converted basis, according to a press release.

The deal values MoneyGram at more than $1 billion, and assumes approximately $940 million of MoneyGram outstanding debt.

The proposal represents a premium of approximately 15 percent over a previous offer by Hangzhou, China-based Ant Financial Services Group offer.

Additionally, the release said, the proposal offers stockholders a "clear and significantly more certain" path to a faster closing with no required review by the Committee on Foreign Investment in the United States and no closing condition related to securing change of control consents covering money transmitter licenses in the jurisdictions in which MoneyGram operates.

According to Euronet, a combination with MoneyGram would create substantial benefits, including:

• complementary distribution channels (i.e., MoneyGram focus on large retailers and national post offices, Euronet focus on independent agents and payment solutions) position the combined business for growth in an industry that will expand 4 percent annually in the next two years, according to the World Bank;
• since acquiring Ria in 2007, Euronet has grown its money transfer segment from approximately $200 million to more than $800 million. The company has a track record of integrating more than 35 acquisitions, including four money transfer businesses, and continuing investment in its money transfer operations;
• Euronet and MoneyGram understand that the requirements for compliance in the money transfer industry will increase as the market continues to expand and evolve. The companies would give global customers and regulators confidence through a best-in-class compliance program.

Wells Fargo Securities LLC is serving as financial advisor for Euronet; Gibson, Dunn & Crutcher LLP is acting as legal advisor.