Fortifying its presence in Greece,
MoneyGram International Inc.
) announced the purchase of super-agent Advanced ChronoCash
Services (ACCS) in an all stock payment deal. ACCS has been
MoneyGram's strongest agent since 2003, with over 400 locations
currently across Greece.
Additionally, MoneyGram has publicized its intention to
acquire MoneyGlobe Payment Institution SA, which along with ACCS
is based out of Athens, Greece. However, the culmination of the
deal with MoneyGlobe is dependent on the receipt of regulatory
MoneyGlobe offers cash-to-account money transfer services from
Greece to Bangladesh. Other terms and value of both the deals
remain undisclosed. Nonetheless, we believe that MoneyGram enjoys
adequate liquidity and free cash flow that should support
efficient capital deployment.
Meanwhile, the addition of ACCS and MoneyGlobe to MoneyGram's
basket not only adds to its brand value but also amplifies the
company's scope of expansion in Greece. The gradual improvement
in Greece is further expected to boost MoneyGram's growth
opportunities in the country.
MoneyGram continues to bolster its position as one of the
leading money transfer companies in the world by constantly
expanding its payment network. Simultaneously, the company is
also enhancing brand awareness by developing user-friendly
payment solutions that suit the new market trends. In this
regard, it has introduced various self-service products such as
mobile, kiosk and online money transfer payment processes.
Led by diversified and market-compliant growth strategies,
MoneyGram aims to continue achieving double-digit growth in money
transfer transactions and increasing free cash flow. Going ahead,
we believe that expansion through such inorganic strategies is
expected to drive MoneyGram's growth in the medium-
While MoneyGram carries a Zacks Rank #4 (Sell), strong peer
Fleetcor Tech Inc.
) holds a Zacks Rank #1 (Strong Buy) is worth cosnidering. Other
outperformers of the financial sector include
American Express Co.
Global Cash Access Holdings Inc.
), both of which carry a Zacks Rank #2 (Buy).
AMER EXPRESS CO (AXP): Free Stock Analysis
FLEETCOR TECH (FLT): Free Stock Analysis
GLOBAL CASH ACS (GCA): Free Stock Analysis
MONEYGRAM INTL (MGI): Free Stock Analysis
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