PayPal will acquire Xoom for $25 per share in cash or an approximate $890 million enterprise value. The transaction represents a premium of 32% over Xoom’s three-month volume-weighted average price.
The acquisition aims to broaden PayPal’s consumer offering to its 68 million active U.S. customers by cross-selling Xoom’s services and expand into new markets.
Led by John Kunze, President and Chief Executive Officer, Xoom is a leader in international remittances enabling customers in the United States to send money to, and pay bills for, family and friends around the world in a secure and fast way, using their mobile phones, tablets or computers.
Commenting on the announcement, Dan Schulman, President of PayPal, said: “Expanding into international money transfer and remittances aligns with our strategic vision to democratize the movement and management of money.
“Acquiring Xoom allows PayPal to offer a broader range of services to our global customer base, increase customer engagement and enter an important and growing adjacent marketplace.
“Xoom’s presence in 37 countries – in particular, Mexico, India, the Philippines, China and Brazil – will help us accelerate our expansion in these important markets”.