Stellar Development Foundation has contacted MoneyGram International about a potential purchase of the 81-year-old remittance giant, Bloomberg reported on Wednesday. MoneyGram International Inc. is one of the largest money transfer services in the U.S. Stellar is partnering with private equity firm Advent on the possible deal.
Representatives for MoneyGram and Advent declined to comment. A representative for Stellar Development couldn’t immediately be reached for comment. MoneyGram rose 11% to $11.49 at 1:13 p.m. in New York on Wednesday, giving the company a market value of $902 million. The stock is up 265% in the past year.
Moneygram has been a takeover target as digital payments moved away from legacy services. China’s Ant Group had been looking to buy MoneyGram in 2017 but declined due to regulatory pushback. Western Union also looked to buy MoneyGram last year, sources told Bloomberg.
MoneyGram specializes in digital peer-to-peer (P2P) payments and is on a mission to mobilize the movement of money. The company serves nearly 150 million people around the world.
MoneyGram International, Inc. is an American money transfer company based in the United States with headquarters in Dallas, Texas. MoneyGram businesses are divided into two categories: Global Funds Transfers and Financial Paper Products.
About Stellar foundation:
The Stellar Development Foundation (SDF) is a non-profit organization founded in 2014 to support the development and growth of the open-source Stellar network. SDF and Stellar seek to unlock the world’s economic potential by making money more fluid, markets more open, and people more empowered.