PayPal closes Xoom acquisition

Source: PayPal

PayPal, Inc. (PYPL) and Xoom Corporation (XOOM) today announced that PayPal has completed its previously announced acquisition of Xoom.

In accordance with the terms of the acquisition agreement announced on July 1, 2015, PayPal acquired all of the outstanding shares of Xoom for $25 per share in cash.

Xoom will operate as a separate service within PayPal under the continued leadership of John Kunze, who has joined PayPal’s executive staff and will report to PayPal CEO Dan Schulman.

Xoom is a secure, fast and affordable way to send money to, and pay bills for, family and friends around the world, using a mobile phone, tablet or computer. With Xoom, PayPal has access to 1.5 million active U.S. customers that sent approximately $7.1 billion in the 12 months ending on September 30, 2015 to people in 40 countries such as Mexico, India, the Philippines, China and Brazil. Beyond its global reach, Xoom has a loyal, mobile-savvy customer base, with 97 percent of its payment volume coming from repeat users and 60 percent of its active users on mobile.

PayPal and Xoom are well-positioned to democratize the management and movement of money. By combining PayPal’s global scale with Xoom’s capabilities, the companies plan to create simpler, more secure and faster ways for more people to send and access their money. Through this acquisition, Xoom will help accelerate PayPal’s entrance into the international remittances market, while PayPal will help expand Xoom’s services to more people in more places around the globe.

PayPal also announced that there will be no changes to its full year 2015 guidance issued on October 28, 2015 based on the acquisition. As previously announced, for full year 2016, PayPal expects the acquisition to be slightly dilutive to its non-GAAP earnings per share. 

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