After announcing that Madison Dearborn Partners had agreed to acquire MoneyGram International, Inc. (MGI), the stock rose in the current market. MGI is now worth $10.59, up about 18% from yesterday’s closing price. At the close of the latest trading day, the stock was trading at $8.95. The previous trading session had a volume of approximately 18.15 million shares. About $2.10 billion is the company’s current market capitalization.
MGI acquired by MDP
MoneyGram International, Inc. (MGI) announced today that funds affiliated with Madison Dearborn Partners (MDP) would acquire all outstanding shares of MoneyGram for $11.00 per share in an all-cash payment valued at roughly $1.8 billion. The purchase price for MoneyGram is 50% higher than the company’s least affected closing stock price on December 14, 2021, the last trading day before the deal was rumored.
MoneyGram’s exclusive financial advisor is BofA Securities Inc., while legal counsel is Vinson & Elkins LLP, and financial services regulatory counsel is Paul Hastings LLP.
Madison Dearborn Partners (MDP) Avisors are:
- Goldman Sachs & Co. LLC
- Deutsche Bank Securities Inc.
- Barclays and J.P. Morgan Securities LLC
- Latham & Watkins LLP
- Kirkland & Ellis LLP
- Covington & Burling LLP
Transaction details of the deal
The deal, agreed unanimously by the MoneyGram Board of Directors, values each share of MoneyGram common stock at $11.00. MDP will additionally refinance the Company’s $799 million debt as of December 31, 2021.
Guaranteed debt funding was supplied by Goldman Sachs, Deutsche Bank Securities, and Barclays. After shareholder and regulatory clearances, including money transmitter licenses in numerous jurisdictions, the merger should close in the fourth quarter of 2022. MoneyGram will become a private company, with no public stock trading.
Conclusion
MoneyGram International, Inc. (MGI) is being acquired at a pretty reasonable valuation. But the main thing is that the company will not remain a public company and will no more trade on the stock exchange. Due to this, the company’s stock is skyrocketing in the current market.
