Corporate Finance, DeFi, Blockchain, Web3 News
Corporate Finance, DeFi, Blockchain News

PayPal to Acquire Xoom for $890 Million

PayPal, the online payments company weeks away from an expected spinoff from eBay, took a leap into the growing digital money transfer business on Wednesday by acquiring Xoom, a big player in the field.

PayPal will spend $25 a share in cash to acquire the publicly traded Xoom, or about $1.09 billion. Excluding Xoom’s cash and short-term investments and including its debt, PayPal will end up paying about $890 million for the company.

Xoom, based in San Francisco, enables U.S. customers to send as much as $3,000 in a single transaction to friends and family around the world using their mobile phones, tablets or computers. Its 1.3 million users transferred $7 billion to 37 countries, including Mexico, China and India, in the 12 months ended March 31, the company said. Xoom’s first-quarter revenue gained 24 percent to $44.4 million.

The purchase, expected to close in the fourth quarter, will allow PayPal to sell international transfers to its U.S. customer base of 68 million, many of whom need the service and don’t overlap with Xoom’s users, Schulman said.

About 90 percent of Xoom’s business is from repeat customers and 60 percent of the transactions are made from mobile devices, Schulman said.

EBay announced plans to spin off PayPal last year following criticism from activist investor Carl Icahn that slowing growth in the online marketplace was holding back its payments division. The split is scheduled to occur later this month.

Les médias du groupe Finyear

Lundi 6 Juillet 2015