MoneyGram sells FSMC payment processing business to Solutran

MoneyGram International, a leading provider of global payment services, stated today in the announcement that its FSMC business will be sold to Plymouth, Minn.-based Solutran, a move that reinforces MoneyGram's commitment to focus resources on its profitable money transfer and bill payment businesses. Terms of the deal were not disclosed. The agreement is expected to close in the third quarter, and trough it the vast majority of the 37 current FSMC employees will become employees of Solutran. A privately owned company Solutran was founded in 1984 and provides a full range of treasury management and customized payment solutions to fulfillment and direct marketing companies, non profit organizations, publishers, retailers and grocers. The FSMC business, which provides disbursement processing services to corporations, fulfillment companies and government agencies, represents less than 1 percent of MoneyGram's total revenue. Barry Nordstrand, president and CEO of Solutran said: "This is a coming home of sorts for FSMC. FSMC was founded by Elloyd Hauser who also started Solutran. These two organizations are a strategic fit and will create significant synergy. Together Solutran and FSMC represent an unbeatable solution in processing corporate disbursement and government WIC payments." Anthony Ryan, MoneyGram President and CEO. said: "This is a win-win for both companies. 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."