MoneyGram International Inc. said Friday that it had agreed to sell its corporate payment processing unit to the Plymouth, Minn., payment technology provider Solutran Inc.
The deal is expected to close next quarter. The price was not disclosed
MoneyGram said the processing unit, FSMC, generates less than 1% of its total revenue, and that selling it would help the parent focus on money transfers and bill payments.
"It's a move that enables MoneyGram to shift our organization closer to our core business," Anthony Ryan, its chief executive, said in a press release.
Most of FSMC's 37 employees are expected to join Solutran.
FSMC's founder, Elloyd Hauser, also started Solutran.
MoneyGram is moving in the opposite direction of Western Union Co., which announced plans this month to expand its business payment operations by buying the Canadian foreign exchange transaction processor Custom House Ltd.