The parent company of global mobile payment platform Alipay hasagreed to purchase MoneyGram for approximately $880 million,according to a press release.

Alipay's parent, Hangzhou, China-based Ant Financial ServicesGroup, is offering the shareholders of Dallas-based MoneyGram$13.25 per share in cash, the announcement reported. The pricerepresents a 20% premium over MoneyGram's volume-weighted averageshare price over the prior three-month period. Ant FinancialServices Group is an affiliate of Chinese e-commerce giant AlibabaGroup and focuses on serving small and micro enterprises andconsumers.

“We believe financial services should be simple, low-cost andaccessible to the many, not the few,” Ant Financial CEO EricJing said. “The combination of Ant Financialand MoneyGram will provide greater access, security and simplicity for people around the worldto remit funds, especially in major economies such as theUnitedStates, China, India, Mexico and thePhilippines.”

MoneyGram, a large competitor in the global remittances business, said it will stay in Dallasand operate under its existing brand.

The deal will combine MoneyGram's money transfernetwork, which reportedly has 2.4 billion bank and mobile accountsand 350,000 physical locations in 200 countries and territories,with Ant Financial's more than 630 million users — including450 million with Alipay and 180 million with affiliate Paytm,which is a popular e-commerce and payment provider in India. Thedeal could increase MoneyGram's transaction volume inthe Asia-Pacific region as well, according to the release.

MoneyGram, which also offers bill pay services, money orders andprocesses official checks in some markets, is expected to maintainand grow its U.S.-based workforce, according to theannouncement.

“MoneyGram can now accelerate and expand our suite ofglobal hybrid solutions and integrate an even larger digital andphysical network, making money transfers easier for customers andproviding a wider selection of services for the agents who servethem around the world. Ant Financial is an ideal partnerfor MoneyGram; together, we will be able to expand ourbusiness and, in doing so, offer more people around the worldaccess to a reliable financial connection to loved ones,” MoneyGramCEO Alex Holmes said.

Last April, Ant Financial reportedly closed a $4 billion-plusfunding round that pegged its value at around $60 billion,according to CNBC.

MoneyGram reported $1.4 billion in total revenue in 2015 and$1.125 billion in total revenue for the nine months ending Sept.30, 2016, according to SEC filings.

Worldwide, people sent approximately $582 billion to relativesin other countries in 2015, a 2% decline from 2014, according to aPew Research analysis of World Bank data.

“Cross-borderpayments services have not kept pace with the shift to a globaleconomy and digital age, creating compelling opportunities forbanks and nonbanks alike,” according to a forecast by globalconsulting firm McKinsey. The continuing shift to cashlesstransactions could grow transaction-related revenues, both domesticand cross-border, by approximately 7% annually, it said.

MoneyGram shareholders and regulators still need to approve thedeal, which is expected to close in the second half of 2017.