PayPal has agreed to acquire Xoom, an online money-transfer company, for $25 per share in cash or an approximate $890m enterprise value.
Following the deal, Xoom will operate as an independent service within the PayPal portfolio. Paypal expects to fund the transaction with cash on its balance sheet.
PayPal president Dan Schulman said: "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 president and CEO John Kunze said: "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."
The acquisition will allow PayPal to expand into the global transfer market as well as accelerate its global expansion in key countries including Mexico, India, China, Brazil, and the Philippines.
The acquisition will enable Xoom to accelerate its time-to-market and also expand its portfolio of send-markets by using PayPal’s international network.
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By GlobalDataSubject to customary closing conditions, the deal is scheduled to complete by the fourth quarter of 2015.
