Euronet Worldwide outbids Alibaba affiliate Ant Financial for MoneyGram
15 March 2017
US electronic payments company Euronet Worldwide Inc, yesterday tabled a $1 billion bid for rival MoneyGram International Inc, topping a lower bid by Alibaba Group affiliate China's Ant Financial Services Group.
Kansas-based Euronet Worldwide has offered to pay $15.20 in cash for each share of MoneyGram common stock and MoneyGram preferred stock, valuing the company at more than $1 billion.
Euronet Worldwide will also assume MoneyGram's debt of around $940 million, taking the total deal value to nearly $2 billion.
Euronet said that its offer is $130 million more than that offered by Ant Financial. If the deal is rejected by antitrust regulators, Euronet has offered to pay MoneyGram a breakup fee of $69 million, which is four times higher than the termination fee offered by Ant Financial.
MoneyGram said it that its board has not changed its recommendation to support the January merger agreement signed with Ant Financial, but would "carefully review and consider" the proposal from Euronet.
Euronet Worldwide said that 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 (CFIUS) and no closing condition related to securing change of control consents covering money transmitter licenses in the jurisdictions in which MoneyGram operates.''
A deal with Ant Financial Services would require clearance by CFIUS, a US panel that reviews foreign acquisitions of domestic assets for national security concerns.
Euronet Worldwide offers payment and transaction processing solutions to financial institutions, retailers, service providers and individual consumers.
These services include comprehensive ATM, POS and card outsourcing services, card issuing and merchant acquiring services, software solutions, cash-based and online-initiated consumer-to-consumer and business-to-business money transfer services, and electronic distribution of prepaid mobile phone time and other prepaid products.
Euronet's global payment network includes over 35,000 ATMs, around 163,000 EFT POS terminals and a portfolio of outsourced debit and credit card services which are under management in 53 countries; card software solutions; a prepaid processing network of approximately 661,000 POS terminals at around 305,000 retailer locations in 35 countries; and a global money transfer network of around 317,000 locations in 146 countries.
It has 61 offices globally and serves clients in approximately 160 countries.
MoneyGram is the world's second largest provider of money transfers and operates in more than 200 countries with a global network of about 347,000 agent offices.
The Dallas, Texas-based company has an operation center in Minnesota and regional and local offices around the world.
MoneyGram works with individuals and businesses through a network of agents and financial institution customers.