Shares of MoneyGram International Inc. MGI, +17.77% soared 19.8% in premarket trading Tuesday, as a trading halt for news was lifted, after the digital payments company announced an agreement to be acquired by private-equity firm Madison Dearborn Partners LLC (MDP) in a cash deal valued at $1.8 billion, including $799 million in debt. Under terms of the deal, MDP will pay $11.00 for each MoneyGram share outstanding, which represents a 22.9% premium to Monday’s closing price of $8.95. With about 91.7 million shares outstanding as of Oct. 27, the per-share price implies a market capitalization for MoneyGram of $1.01 billion. The deal includes a 30-day “go-shop” period, in which MoneyGram can solicit alternative acquisition proposals. After the deal closes, which is expected to occur in the fourth quarter of 2022, MoneyGram will continue to operate under the MoneyGram brand and be led by current Chief Executive Alex Holmes. The stock has soared 37.7% over the past three months through Monday, while the S&P 500 SPX, +1.15% has slipped 6.0%.
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