PayPal which is in the process of being separated from eBay has entered into an agreement to acquire Xoom, a leading digital money transfer provider that enables consumers to send money, pay bills and send mobile reloads to family and friends around the world. The deal is worth approximately $890 million. The acquisition is expected to extend PayPal’s offering to its 68 million active U.S. customers by cross-selling Xoom’s services, while allowing Xoom to expand its portfolio of send-markets by leveraging PayPal’s wider international network. Upon closing the acquisition, the San Francisco-based Xoom will operate as a separate service within PayPal.
Dan Schulman, President of PayPal
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.
John Kunze, President and Chief Executive Officer of Xoom
Becoming part of PayPal represents an exciting new chapter for Xoom, which will help accelerate our time-to-market in unserved geographies and expand the ways we can innovate for customers. Being part of a larger, global organization will help us deliver the best possible experience to our customers, while maximizing value for our shareholders.
