ANT financial, which is owned by Alibaba Group, is all set to buy the US payment firm MoneyGram for $880 Million to expand their market in the USA. As Ant Financial are paying about $13.25 per share for NASDAQ-listed MoneyGram. The deal is to be subjected to regulate which approves in expected to close in the second half.
Established in July 2013, MoneyGram is a global payment services company. The Company’s products include global money transfers, bill payment solutions and financial paper products. MoneyGram conducts its business through its wholly owned subsidiary MoneyGram Payment Systems, Inc. (MPSI). The Company works on Global Funds Transfer and Financial Paper Products. MoneyGram operated in United States, United Kingdom and through an agent website in Italy, Saudi Arabia and Japan. MoneyGram recorded revenue of $1.4 Billion in the year 2015.
Alibaba’s Ant Financial has bankrolled Indian Mobile payment firm PayTm in 2015 and the company expanded in South Asia by acquiring a stake in Thailand Based-Ascend Money. This acquisition provides Ant Financial’s Alipay to service over 450 Million users in Asia alone.
On the expansion of their market in the United States, Ant Financial says “We will provide greater access, security and simplicity for people around the world to remit funds, especially in major economies in U.S. We are also looking for expansion in India, Mexico, and the Philippines.”
Ant Financial are about to go live in the United States in next two years. In China, ANT Financial recorded U.S.IPO worth $25 Billion in 2014 and raised $ 45 Billion funding rounds at the value of $60 Million. China Investment Corp (CIC), CCB Trust, a subsidiary of China Construction Bank, China Life, China Post Group, China Development Bank Capital and Primavera Capital Group are the investors of Alibaba’s Ant Financials. Read more Indian Startup News.