PayPal Inc. has agreed to buy digital money transfer company
Xoom Corp. in a deal with an enterprise value of $890 million, a
move that the company said will enhance PayPal's international
presence.
The $25-a-share deal offers a 21% premium to Xoom's Wednesday
closing price of $20.70. In after-hours trading, Xoom shares
recently changed hands at $22.21.
PayPal, which is in the process of being separated from eBay
Inc., 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."
For the 12 months ended March 31, San Francisco-based Xoom had
more than 1.3 million active customers who sent about $7 billion
via Xoom. In the quarter ended March 31, revenue rose 24% to $44.4
million, and the company projected revenue of $191 million to $196
million for 2015.
Xoom was founded in 2001 and went public in 2013.
Write to Josh Beckerman at josh.beckerman@wsj.com
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