Euronet offers to acquire MoneyGram; companies fail to agree on discussion terms

By Lisa Kerner

Charlotte, N.C., Dec. 13 - Euronet Worldwide Inc. offered to acquire MoneyGram International, Inc. to create "a powerful new global player in the money transfer business well positioned to capture share in a highly fragmented market," according to a Euronet news release.

The all-stock transaction would be valued at $1.65 billion, or $20 per MoneyGram share, with a fixed exchange ratio of 0.6179 of a Euronet common share for each share of MoneyGram.

Euronet, in a Dec. 4 letter to the company, offered interim financing, noting its $250 million of cash in the bank along with additional funds available from Euronet's existing financing arrangements.

While MoneyGram said it would discuss this latest proposal subject to the execution of a mutual confidentiality and standstill agreement, Euronet said it would not discuss the proposed acquisition under those conditions.

MoneyGram had hired JPMorgan to complete a strategic review of MoneyGram's payment systems business, according to a company statement.

The company is currently in discussions with "certain potential investors regarding financing alternatives" and said no assurances can be given that any financing alternative will be agreed upon or consummated.

MoneyGram is a payment services company located in Minneapolis.

Based in Leawood, Kan., Euronet provides products and services for electronic payments.

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