Chinese online giant Alibaba is to buy the money transfer services provider MoneyGram through its subsidiary Ant Financial.

According to Ant Financial the transaction will be worth US $880 million.

The company released a statement last week that said, “The transaction will connect MoneyGram’s money transfer network of 2.4bn bank and mobile accounts and 350,000 physical locations with Ant Financial ’s users, who enjoy a broad suite of technology-based financial services, including payments, credit and insurance products.

“The combination will provide consumers in over 200 countries and territories with convenient and accessible financial services, which furthers Ant Financial’s mission to promote equal access to financial services globally.”

After the acquisition is complete, MoneyGram will remain headquartered in Dallas and will continue to operate under its existing brand.

“The acquisition of MoneyGram is a significant milestone in our mission to bring inclusive financial services to users around the world,” said Eric Jing, Chief Executive Officer of Ant Financial. “We believe financial services should be simple, low-cost and accessible to the many, not the few. 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.”

Alibaba is known to be cash rich and the acquisition is not unusual for Chinese companies. Its move into the US may raise hackles in the new Presidential administration though its reaction has yet to appear.  
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