ANT Financial Acquired US Payment Firm MoneyGram For US$880Mn To Expand In USA
Ant Financial is paying about US $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.
Ant Financial Services Group (“Ant Financial”), was officially founded in October 2014 and originated from Alipay which is the world’s leading third-party payment platform founded in 2004. With its vision of “bringing small and beautiful changes to the world,” Ant Financial is dedicated to creating an open ecosystem, enabling financial institutions and partners to make rapid progress towards “Internet+” goals through its “Internet Booster Plan,” and providing inclusive financial services to small and micro enterprises and individual consumers.
Ant Financial runs Alipay, Ant Fortune, Ant Financial Cloud and other financial services. Ant Financial’s invested companies and affiliates also work with these businesses units and support Ant Financial’s ecosystem. The services provided by Ant Financial and its affiliates cover payment, wealth management, credit reporting, private bank and cloud computing.
US Payment Firm MoneyGram was established in July 2013 in Dallas, 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. It handles cross-border currency transfers — remittance payments — in close to 200 countries, where it claims to have 350,000 physical locations.
Alibaba’s Ant Financial has financed 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.