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Table of Contents
PART I
Item 1. BUSINESS
Overview
MoneyGram International, Inc. (together with our subsidiaries, "MoneyGram," the "Company," "we," "us" and "our") is a leading global
payment services company. Our major products include global money transfers, money orders and payment processing solutions for
financial institutions. Our core purpose is to help people and businesses by providing affordable, reliable and convenient payment
services.
The MoneyGram® brand is recognized throughout the world, and we are committed to bringing greater control and choice to our
customers. Our payment services enable consumers throughout the world, many of whom are not fully served by traditional financial
institutions, to transfer money and pay bills, helping them meet the financial demands of their daily lives. Our payment services also help
businesses operate more efficiently and cost-effectively.
History and Acquisitions
We conduct our business primarily through our wholly owned subsidiary MoneyGram Payment Systems, Inc. ("MPSI"). Through its
predecessor, Travelers Express Company, Inc. ("Travelers Express"), MPSI has been in operation for nearly 70 years. Travelers Express
acquired MPSI in 1998, adding the MoneyGram brand to our Company and adding international money transfer services to our payment
service offerings. MoneyGram International, Inc. was incorporated in Delaware in December 2003 in connection with the June 30, 2004
spin-off from our former parent company, Viad Corp. On June 30, 2004, Viad Corp made a tax-free distribution of all of the issued and
outstanding shares of common stock of MoneyGram to holders of record of Viad Corp stock.
In 2005, we consolidated the operations of Travelers Express with MPSI to eliminate overlapping costs of operating the two businesses
under separate corporate entities, and to complete the transition of our business from the Travelers Express brand to the MoneyGram
brand. Effective December 31, 2005, the entity that was formerly Travelers Express merged with and into MPSI, and we retired the
Travelers Express brand.
In May 2006, our subsidiary MoneyGram Payment Systems Italy, S.r.l. ("MPS Italy") acquired the assets of Money Express S.r.l., our
former super-agent in Italy. The acquisition of Money Express S.r.l. provided us with opportunities for further expansion and distribution
of our international money transfer services in the region. As a result of the acquisition, MPS Italy manages our network of agents in
Italy.
In October 2007, we completed the acquisition of PropertyBridge, Inc. ("PropertyBridge"), a provider of electronic payment processing
services for the real estate management industry. The acquisition provided us with additional rental payment opportunities in this key
rental payment vertical and fit strategically with our existing bill payment service offerings.
Due to licensing requirements and marketing constraints in certain European countries, we began to develop a retail strategy in Western
Europe during 2006 to offer our services through Company-owned retail stores and kiosks in addition to our typical agent model. In May
2006, we formed an entity in France, MoneyGram France S.A., which became a licensed financial institution in September 2006. We
opened our first retail store in France shortly thereafter. During 2007 and 2008, we continued to develop this retail strategy in Western
Europe. As of December 31, 2008, we operate 22 Company-owned retail stores or kiosks in France and 34 in Germany. We expect to
open additional locations in these and other markets on a targeted basis.
In August 2008, we completed the acquisition of MoneyCard World Express, S.A. ("MoneyCard") and Cambios Sol, S.A., two money
transfer super-agents located in Spain. The acquisition of these two entities, each of which manages part of our agent network in Spain,
accelerates our expansion and distribution in this key send market. In 2009, we merged Cambios Sol, S.A. into MoneyCard and now
maintain MoneyCard as our subsidiary.
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