Euronet Worldwide Proposes to Acquire MoneyGram for $15.20 Per Share 

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  • Offer Represents an Approximately 15% Premium Over MoneyGram’s Existing Agreement with Ant Financial and a Premium Of Approximately 28% to the Company’s Closing Price on the Day Prior to the Ant Financial Transaction Announcement
  • Clearly Superior Offer Provides Significant Benefits to MoneyGram Shareholders Including Certainty to Closing with No CFIUS Requirement and No Closing Condition Related to Receipt of Money Transmitter Licenses
  • Compelling Strategic Rationale for Future Value Creation, Including Increased Customer Choice Through Complementary Product Offerings
  • Expected Cost Synergies of Approximately $60 Million in the Second Year Post Close
  • Meaningful Accretion to Adjusted Earnings Post Close

Euronet Worldwide, Inc. (“Euronet” or the “Company”) (NASDAQ:EEFT), a leading electronics payments provider, today announced that Euronet has made a proposal to acquire all shares outstanding of MoneyGram International, Inc. (“MoneyGram”) (NASDAQ:MGI) for $15.20 in cash for each share of MoneyGram Common Stock and MoneyGram Preferred Stock on an as-converted basis, valuing the company at more than $1 billion, in addition to the assumption of approximately $940 million of MoneyGram’s debt outstanding. The combination of these highly complementary businesses would create a very well-positioned global payments company that would benefit customers and employees in the United States and around the world.

The proposal represents a premium of approximately 15% over the Ant Financial Services Group (“Ant Financial”) offer and a premium of 28% over the closing price of $11.88 for MoneyGram stock on the final day of trading prior to the transaction announcement on January 26, 2017. The offer also represents a premium of approximately 38% to MoneyGram’s volume weighted average share price over the three month period prior to the Ant Financial transaction announcement.  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.

In addition to the compelling value to stockholders, a combination of Euronet and MoneyGram would create substantial benefits for all customers, agents, employees and stakeholders.

  • Positioned For Growth – Both companies have highly complementary distribution channels that will best position the combined business to grow in the highly fragmented global money transfer industry that is projected by the World Bank to expand by 4% annually over the next two years.  MoneyGram’s focus on large retailers and national post offices combined with Euronet’s focus on independent agents and its broad set of consumer payment solutions will create a leading value proposition for customers worldwide.  Furthermore, Euronet believes the companies’ combined core strengths will accelerate their respective digital platform growth initiatives.
  • Proven & Collaborative Management Team – Euronet’s experienced and disciplined leadership team has long respected the MoneyGram team and is ready to work together to drive incremental growth for the combined business.  Since the acquisition of Ria in 2007, Euronet has grown its money transfer segment from just more than $200 million in pro forma revenue to over $800 million, a CAGR of 16%. Euronet has a proven track record of successfully integrating more than 35 acquisitions and, more significantly, four money transfer businesses, including Ria, IME, HiFX and XE. In addition, over the same time period, Euronet has continued to invest in its money transfer operations, growing employee headcount at a 12% CAGR to support a seven-fold increase in agents while also expanding Pro Forma Adjusted EBITDA margin over 325 basis points.
  • Commitment to Compliance – Both Euronet and MoneyGram understand the requirements for robust compliance in the money transfer industry are only increasing as the market continues to expand globally and venture into new digital platforms.  Euronet has an impeccable record of compliance since its founding in 1994 and, together, both companies would give global customers and regulators confidence through a best-in-class compliance program.

Source: Euronet

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