MoneyGram Updates Its Merger with MDP

Fazzaco learned that MoneyGram International, Inc. (NASDAQ:MGI) has issued an update on its previously announced merger agreement with Madison Dearborn Partners, LLC (MDP), which was endorsed by more than 99% of the company's shareholders in May of this year.

MoneyGram and MDP anticipate to close the merger early in the first quarter of 2023 after making significant progress toward satisfying the closing conditions over the past few months.

The regulatory conditions for this transaction has been well established up to now. The parties have received approval or non-objection from money transmission regulators in all applicable U.S. states and territories as well as all but one approval from international money transmission regulators. Besides, the FCA in the UK and the National Bank of Belgium also approved the transaction. Previously, they obtained all required international antitrust and foreign direct investment approvals.

Additionally, the parties will begin a financing marketing phase after obtaining the final international money transfer regulatory license. The marketing period may run up to fifteen consecutive business days and will start no earlier than January 3, 2023, in accordance with the conditions of the merger agreement.

"We remain focused on achieving our shared goal to finalize this transaction as soon as possible," said Alex Holmes, MoneyGram Chairman and CEO. "As we plan for a first quarter closing, we're very appreciative of all the parties who have helped us reach the key milestones throughout this process. We're eager to officially partner with MDP and continue to execute our strategic plan as a private company."

"As we approach the close of our transaction with MoneyGram, the MDP team remains excited about the opportunities ahead," said Brendan Barrett, a Managing Director on MDP's Financial and Transaction Services team. "We look forward to working alongside the strong and experienced team at MoneyGram to further transform the Company into an industry leader in cross-border payments delivering innovative financial solutions that connect the world's communities."

MoneyGram has witnessed a sustained digital growth globally. Most recently, MoneyGram Online has become available in Brazil​.