FSMC processing unit of MoneyGram to be sold to Solutran

As it was reported at the end of last week MoneyGram International Inc plans to quit the payment processing market and sell its unit to the privately-held Solutran. FSMC, or the payment processing business, represents less than 1 percent of MoneyGram's total revenue. Once the deal is completed MoneyGram will be able to fully focus on its money transfer and bill payment businesses.

According to the company statement the deal is expected to close in the third quarter with the major part of its current 37 FSMC business employees joining Solutran.

"It's a move that enables MoneyGram to shift our organization closer to our core businesses and at the same time provides Solutran with an exceptional business that fits its growth strategy," Chief Executive Anthony Ryan said in a statement.

MoneyGram's investment portfolio was hit as the credit market conditions were deteriorating, and the company has been struggling to move away from riskier asset-backed securities to safer instruments such as government debt.