Paypal announced on Wednesday that it was acquiring San Francisco-based Xoom, a company that facilitates the digital transfer of money internationally, Forbes reports. The all-cash deal values Xoom at $890 million, or $25 a share.
“Expanding into international money transfer and remittances aligns with our strategic vision to democratize the movement and management of money,” said PayPal President Dan Schulman.
“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,” he said. “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.”
Xoom is a digital money transfer provider that enables consumers to send money and pay bills for family and friends around the world in a secure, fast, and cost-effective way, using a mobile phone, tablet or computer. Founded in 2001 by PayPal investor Kevin Hartz and serial entrepreneur Alan Braverman, the company went public in 2013.
“Becoming part of PayPal represents an exciting new chapter for Xoom, which will help accelerate our time-to-market in unserved