MoneyGram International (NASDAQ:MGI) has entered into an agreement to purchase Nexxo Financial Corporation's kiosk-based retail money transfer line of business. As part of the purchase, MoneyGram shall acquire Nexxo’s kiosk and retail branch footprint of approximately 200 locations in California, Texas, Illinois and New York along with the associated money transfer and bill payment transactions totaling over $250 MM in 2012. The sale, which is expected to close in the fourth quarter of this year, will expand and enhance MoneyGram's services to existing and future agent relationships.
The agreement transforms MoneyGram into Nexxo’s largest client and strengthens a partnership that will bring a compelling solution to all MoneyGram agents looking to enhance their customers’ experience. The sale of Nexxo’s retail line of business allows Nexxo to apply greater resources into providing its Everyday Financial Services Platform technology to banks and retailers looking to provide a multi-service, multi-channel experience to their emerging middle class and underserved customers.
“The marriage of MoneyGram’s extensive retail footprint and Nexxo’s industry leading self-serve technology can ultimately bring millions of consumers more convenience and compelling services. It’s rewarding that this top global money transfer company chose our technology for their expansion,” said Nexxo CEO Dave Alvarez. “The pace of new entrants into the prepaid and underserved market continues to accelerate, and with it, the need for comprehensive technology solutions. Nexxo will continue to build on its position as a leader in multi-service multi-channel technology specifically designed to aid retailers and financial institutions in these efforts.”
“We were searching for a partner who could offer fast, convenient and flexible technology and we found that combination in Nexxo,” said Alex Hoffman, MoneyGram senior vice president, global product management and emerging channels. “By acquiring these assets, we are taking a leap forward in our go-to-market strategy with flexible self-service solutions for our agents and consumers. These kiosks will provide a convenient way for retailers to effectively offer consumers financial products and maintain focus on their core business.”