MoneyGram International Inc. (MGI - Free Report) announced the acquisition of Atlanta-based money transfer agency, Latino Services, for undisclosed value and terms.
The acquisition will add 10 new stores to MoneyGram’s money transfer network, which will enhance remittances from the US to Mexico and Latin America, further expanding the company’s reach in the high potential emerging markets.
Moreover, MoneyGram aims to penetrate deeper into the money transfer market in Atlanta through this acquisition. With its global consumer experience, the company is focused on offering value-added services that are user-friendly, economical and secure.
Further, the acquisition blends well with MoneyGram’s move to explore new markets and methods in order to add momentum to its money transfer business, which is the most significant lifeline of this company.
Overall, the company continues to bolster its position as one of the leading money transfer companies in the world by constantly expanding its payment network via acquisitions and alliances. Simultaneously, MoneyGram is also enhancing its brand awareness by developing user-friendly payment solutions that suit the new market trends.
Aggressively working on these growth strategies, MoneyGram also renewed its alliance with Nix Financial to retain its market position in Los Angeles, where the company offers a variety of financial services. These money transfer services include giving out small loans, prepaid and credit cards as well as other services such as bill payments and liquidation of cheques.
The effects of its consistent growth strategies were also visible in MoneyGram’s first-quarter 2013 results. MoneyGram earned 27 cents per share in the first quarter of 2013, which came in higher than the Zacks Consensus Estimate of 24 cents and the year-ago quarter number of 23 cents.
While MoneyGram is scheduled to release its second-quarter earnings before the bell on Jul 25, the Zacks Consensus Estimate for the quarterly earnings is pegged at 30 cents per share, up about 28.3% from the year-ago quarter.
MoneyGram carries a Zacks Rank #3 (Hold). However, other outperformers in the financial sector to watch out include Heartland Payment Services Inc. , Moody’s Corp. (MCO - Free Report) and Official Payments Holdings Inc. . All these stocks carry a Zacks Rank #1 (Strong Buy).