MoneyGram International Inc (NASDAQ:MGI) is trading higher Tuesday after the company announced it entered into an agreement to be acquired by Madison Dearborn Partners (MDP).
Funds affiliated with MDP will acquire all outstanding shares of MoneyGram for $11 per share in an all-cash transaction valued at approximately $1.8 billion.
The transaction is expected to close in the fourth quarter. Upon closing, MoneyGram will become a private company. MDP plans to refinance the company's outstanding debt.
The agreement includes a 30-day "go-shop" period expiring on March 16. During this time, MoneyGram will evaluate alternative acquisition proposals. The company has the right to terminate the MDP agreement and enter into a superior proposal during the go-shop period.
In connection with the announcement, MoneyGram has canceled its previously announced financial results conference call, which was scheduled for Feb. 25.
MoneyGram focuses on delivering innovative financial solutions to connect the world's communities.
See Also: Why Joby Aviation Shares Are Rising Today
MGI Price Action: MoneyGram has traded as low as $5.06 and as high as $12.36 over a 52-week period.
The stock was up 18.8% at $10.64 at time of publication.
Photo: Mike Mozart from Flickr.
