- Stellar and Advent partner in what is purported to be an agreement to acquire MoneyGram Online Payment Services Company.
- Stellar and Ripple both offer financial services, but have been adversaries due to different visions and philosophies.
MoneyGram International Inc., one of the largest providers of money transfer services in the United States, the Stellar Development Foundation and Advent International are interested in taking screening.
Stellar is a San Francisco-based non-profit organization that supports the Stellar network. last is an open source platform allowing to transfer its native XLM token using the technologyblockchain gie. On the other hand, Advent is a Boston-based global private equity firm and a serial payments investor. Initially, Advent supported the companies Vantiv and Worldpay.
People familiar with the subject said Stellar and Advent are working together on a potential acquisition of MoneyGram. The sources, however, remain anonymous and the information has not been officially confirmed.
Meanwhile, MoneyGram shares rose 11% to $ 11.49, valuing the company at $ 902 million. Stock has also risen 265% over the past year.
Previous attempts to acquire MoneyGram
For MoneyGram has been a buyout target for many companies for some time. Fueled by developmentsTechnological developments and the pandemic, the world is moving further and further away from conventional online payment services.
In 2017, for example, Ant Group, the Chinese financial services conglomerate owned by Alibaba, agreed to acquire MoneyGram. However, the $ 1.2 billion deal was never made because US regulators blocked it. Additionally, one of MoneyGram's rivals, Western Union Co., reportedly made an acquisition offer last year to curb peer competition.
Rivalry between Stellar and Ripple
MoneyGram was a transfer partner r of fintech Ripple Labs since 2018 when it started testing international payments in digital currencies. MoneyGram provided liquidity for the systemRipple's real-time XRP settlement.
However, in December, MoneyGram ended its relationship with the Network ripple transfer. This is after Ripple got into the bad books of the United States Securities and Exchange Commission (SEC). The SEC sued Ripple and its two main executives, for allegedly selling unregistered securities to investors in the form of XRP. In what may appear to be a "pushback," Ripple filed a request this year to sell all of its 8.2 million MoneyGram shares. , Stellar was started in 2014 by Jed McCaleb, who happens to be the co-founder of Ripple (then OpenCoin company). McCaleb left Ripple after falling out with other top executives over pervasive opinions. On the one hand, McCaleb was in favor of Facebook giving an XRP giveaway, but the board disagreed. He hasSo left the company, founded Stellar and made a Facebook giveaway as one of his priority actions.
Additionally, the programmer signed a seven-year deal with Ripple Labs, preventing it from selling 1.5% of the daily XRP volume per day. Stellar and Ripple therefore share many similarities but were rivals in part because of their co-founder’s history. The acquisition of MoneyGram could rekindle hostility.