MoneyGram to Sell FSMC Payment Processing Unit to Solutran
MoneyGram International will sell its Financial Services Management Corp (FSMC) business to Solutran, a move that reinforces MoneyGram’s commitment to focus resources on its profitable money transfer and bill payment businesses. The FSMC unit, which provides disbursement processing services to corporations, fulfilment companies and government agencies, represents less than 1% of MoneyGram’s total revenue.
Through the agreement, which is expected to close in the third quarter, the majority of the 37 current FSMC employees will become employees of Solutran. Solutran is a privately owned company, providing a full range of treasury management and customised payment solutions to fulfilment and direct marketing companies, non-profit organisations, publishers, retailers and grocers.
“This is a coming home of sorts for FSMC,” said Barry Nordstrand, president and CEO of Solutran. “FSMC was founded by Elloyd Hauser, who also started Solutran. These two organisations are a strategic fit and will create significant synergy. Together Solutran and FSMC represent an unbeatable solution in processing corporate disbursement and government WIC [Women, Infants and Children Programme] payments.”