The finance unit of e-commerce giant Alibaba is acquiring MoneyGram (NASDAQ:MG), the money transfer business that is headquartered at Dallas in Texas. The deal is said to be worth $880 million. Ant Financial Services, the unit of Alibaba is paying a premium over the Wednesday closing price of the MoneyGram stock. It closed at $11.88. They will be paying $13.25 for each share of the Texas firm, which is a premium of about 11.5 percent. The business is currently valued at $630 million.

MoneyGram operates from 350,000 locations worldwide where money transfers are received and sent. The anchor business of Ant Financial is Alipay, which is the largest online payments service in China. Alibaba (NYSE:BABA) spun this unit off in 2011. with this acquisition, Ant Financial will now be able to step up their international expansion.

Ant Financial Confirms Acquisition of MoneyGram

Ant Financial has confirmed the acquisition. The company issued a statement saying, “This will provide consumers in over 200 countries and territories with convenient and accessible financial services, which furthers Ant Financials mission to promote equal access to financial services globally”. The CEO of Ant Eric Jing added that financial services must be low-cost, accessible to many, and simple.

Ant Financial Services of China is Expanding Globally Rapidly

He went on to add that the coming together of MoneyGram and Ant Financial will provide simplicity, security and greater access to people to remit funds around the world, but particularly in the United States, Philippines, Mexico, India, and China.

This is the second US deal for the Chinese business. Ant Financial Services will now be connecting the 2.4 billion bank and mobile accounts network of MoneyGram with their customers. Apart from spreading out globally through the impressive network of MoneyGram, the acquisition is also expected to help them deal with the increasing competition in China from Wechat of Tencent Holdings better.

The other important deals signed by Ant Financial Services in recent times have been with Ascend Money of Thailand and PayTM of India. The business has high hopes in India as well, because the biggest beneficiary of the country’s demonetization done last November has been PayTM, where Ant Financial has a stake.

Headquarters of MoneyGram (NASDAQ:MG) will stay at Dallas in Texas and the business will keep operating under the existing brand. Eric Jing has committed to invest in the workforce of the business and help grow more jobs in the US.