Digital money transfer provider PayPal will acquire Xoom for $25 per share in cash or an approximate $890 mn enterprise value. The transaction represents a premium of 32 per cent over Xoom’s three-month volume-weighted average price and was unanimously approved by the boards of directors of both companies, as well as the board of eBay, PayPal’s parent company.
Xoom is an international remittances company that enables customers in the US to send money to, and pay bills for, family and friends around the world, using their mobile phones, tablets or computers.
“Expanding into international money transfer and remittances aligns with our strategic vision to democratise the movement and management of money,” said Dan Schulman, President of PayPal in a statement. “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 is present in 37 countries – in particular, Mexico, India, the Philippines, China and Brazil. The acquisition will help Paypal accelerate its expansion in these markets.