Stellar Foundation, which supports the Stellar Network for blockchain-based payment services, is partnering with private equity firm Advent to purchase MoneyGram. A Bloomberg report states that Stellar has already contacted the remittance company about the potential purchase. According to unnamed sources, neither party has made a final decision, and either one could suspend acquisition efforts.
Founded in 2014, the US-based Stellar Development Foundation is a non-profit blockchain-based organisation that facilitates cross-border payments between consumers and institutions. In May 2021, Stellar made a USD 15 million investment in AirTM, a digital wallet and peer-to-peer exchange platform based in Mexico.
On the potential acquisition, Stellar is partnering with Advent, a US-based firm with experience investing in the payments space. In the past, Advent has backed companies such as Vantiv and Wordpay.
MoneyGram is still one of the world’s largest remittance agencies. With a current market cap above USD 932 million, the company’s stock rose to USD 11.59 on July 21 2021, up 279% since 2020. Furthermore, MGI has climbed over 15% in the last 5 days, more than 65% in three months, and currently has a 110% year-to-date gain.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now