Moneygram International Inc (MGI), The Western Union Company (WU), Xoom Corp (XOOM): This Money Transfer Company Looks Set to Grow

MoneyGram is also working to promote and strengthen its brand following the transfer of its listing from the New York Stock Exchange to NASDAQ. The money transfer specialist entered into a three-year sponsorship deal with Paris Saint-Germain, a strategic move to further popularize the brand in France and globally.

MoneyGram has been ramping up its self-service business by adding kiosks at supermarkets and other locations. To improve the service further, it plans to acquire Burlingame, Cali.-based Nexxo Financial‘s full-service money transfer kiosk business. After the deal closes, MoneyGram’s agents and customers will be able to access its services through the infrastructure of Nexxo Financial, which is available to 15 countries in Latin America.

Looking ahead

There have been reports of MoneyGram going private, and that private equity groups like Bain Capital, GTCR, Carlyle Group, and TPG Capital are eyeing the money transfer company. Whether or not this is true, the news is certainly helping the company’s shares. If MoneyGram is actually going private, then the sale will surely come at a premium to its trading price and will be very profitable for investors and the company.

MoneyGram is working on many fronts to expand its reach into new markets and penetrate deeper into existing ones. The overall macro environment seems to be favorable for the company with the reviving of developed economies, improvements in the housing sector, and declining unemployment. All of the measures taken by the company and these improving macro factors will surely boost the number of transactions MoneyGram processes, helping the company grow its balance sheet and return money to shareholders.

The article This Money Transfer Company Looks Set to Grow originally appeared on Fool.com and is written by Rahul Jaiswal.

Rahul Jaiswal has no position in any stocks mentioned. The Motley Fool recommends McDonald’s, Starbucks, and Western Union. The Motley Fool owns shares of McDonald’s and Starbucks.

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