The Stellar Development Foundation has contacted #MoneyGram International to acquire the 81-year-old money transfer giant. Moneygram International is one of the largest money transfer companies in the #USA.
#Stellar is working with private equity firm #Advent on a possible deal, #Bloomberg reports, citing unnamed sources. At the moment, there is no clear decision on whether to buy or not.
Stellar was previously working on CDBC (Central Bank Digital Currency) and interstate money transfers. Advent International has an investment of 56 billion dollars in 375 companies in 42 countries. Therefore, the already established partnerships and negotiations are of great importance.
MoneyGram is recognized as the preferred company for making cross-border payments. The use of online payments and the increase in the number of online payments during the COVID-19 process increase the importance of MoneyGram. The company is listed on the #NASDAQ and was valued at around $3 a year ago, compared to $12 today.
Details have not been fully disclosed to the public, although talks have begun. In particular, it is a matter of curiosity whether Stellar and Advent companies can reach a joint decision.
MoneyGram had a similar meeting with the #Ripple company in 2019. Ripple bought 10 percent of MoneyGram and invested $ 50 million in the company. Three years later, one third of his investment was withdrawn. It ended its partnership with Ripple after the US Securities and Exchange Commission (SEC) filed a lawsuit against Ripple.
Meanwhile, Stellar (XLM) price has had its best daily breakout in the past month. The coin rose by about 20 percent from $0.224 to $0.268.