PayPal to buy Xoom for $890m in cash
Washington, July 2
Online payment firm PayPal will acquire digital money transfer services provider Xoom for about $890 million in an all-cash deal as it eyes to enter the burgeoning global money remittances market.
Both the firms have signed "a definitive agreement under which PayPal will acquire Xoom for $25 per share in cash or an approximate $890 million enterprise value," PayPal and Xoom Corporation said in a joint statement.
The move provides PayPal entry into the profitable and growing remittances market of Xoom in emerging economies of India, China and Brazil, among others.
In India, Xoom offers instant deposits to Kotak Mahindra Bank, ICICI Bank, HDFC Bank, PNB, Bank of Baroda, Union Bank of India, Federal Bank and Yes Bank.
Xoom provides locked-in exchange rates for money transfers to India and there is no fee when customers send more than $1,000 and pay with their US-based bank account. PTI
