Ant Financial Services Group, an affiliate of Alibaba, announced $880 million merger deal with MoneyGram.

MoneyGram shares surged Thursday following the news by nearly 10 percent.

Shareholders of the Dallas-based company are being offered $13.25 per share in cash, according to a release from Ant Financial, Alibaba’s online payments and financial services arm. Ant Financial will assume or refinance MoneyGram’s outstanding debt.

“Ant Financial is an ideal partner for MoneyGram,” MoneyGram’s CEO Alex Holmes said in a statement.

MoneyGram will have access 630 million more users worldwide with that merge with Ant Financial.

MoneyGram lets consumers and businesses send cash to one another, generating revenue from transaction fees and spreads on foreign-exchange rates. MoneyGram and its larger rival Western Union Co., the dominant players in the global remittance industry, have been battling increased competition from cheaper digital alternatives such as PayPal Holdings Inc.’s Xoom, WorldRemit and TransferWise.

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