Jack Ma’s Ant Financial is buying US-based international money transfer service MoneyGram in a deal worth $US880 million.

Ant Financial, the financial affiliate of Alibaba and parent company of Alipay, offers a broad suite of digital-based financial services, including payments, credit and insurance products.

As part of the deal MoneyGram shareholders are being offered $US13.25 per share in cash. Upon completion of the transaction, MoneyGram will retain its own brand name and management team and remain headquartered in Dallas.

The deal will connect MoneyGram’s money transfer network of 2.4 billion bank and mobile accounts and 350,000 physical locations with Ant Financial’s global base of users.

MoneyGram will be able to leverage Ant Financial’s global presence and existing network to serve more than 630 million users – including 450 million with Alipay and 180 million with India’s leading mobile payment provider Paytm – to increase MoneyGram’s transaction volume across the broad Asia-Pacific region.

The transaction will also help expand Ant Financial’s business in new global markets following its recent partnerships with Paytm in India and Ascend Money in Thailand.

In Australia, Ant Financial has struck a deal with CommBank to introduce Alipay to Australian merchants.

“The combination of Ant Financial and MoneyGram will provide greater access, security and simplicity for people around the world to remit funds, especially in major economies such as the United States, China, India, Mexico and the Philippines,” said Eric Jing, CEO of Ant Financial.

Following Jack Ma’s meeting with US President Donald Trump — and his promise to create one million jobs in the US in five years — Jing emphasised the company’s commitment to US jobs.

“One of MoneyGram’s greatest strengths is its high-quality team of employees. We are committed to continuing to invest in MoneyGram’s workforce and growing jobs in the United States, where MoneyGram has made a mark with outstanding customer service, innovative products and industry-leading technology and compliance programs,” Jing said.

Alex Holmes, CEO of MoneyGram said Ant Financial is the “ideal partner” for MoneyGram.

“MoneyGram can now accelerate and expand our suite of global hybrid solutions and integrate an even larger digital and physical network, making money transfers easier for customers and providing a wider selection of services for the agents who serve them around the world,” Holmes said.

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