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PayPal to acquire digital money transfer provider Xoom
2015-07-02 09:04:00| Telecompaper Headlines
(Telecompaper) PayPal said it has agreed to acquire Xoom, a digital money transfer provider, for USD 25 per share in cash, bringing the total entreprise value to USD 890 million. The deal, at a 32 percent premium over Xoom's three-month volume-weighted average share price, was unanimously approved by the boards of directors of both companies, as well as the board of PayPal parent eBay. The acquisition will allow PayPal to offer a broader range of services worldwide, increase customer engagement and enter a growing adjacent marketplace, the company said. Xoom is present in 37 countries, and in particular in Mexico, India, the Philippines, China and Brazil. Due to anticipated one-time integration costs, the transaction is expected to be slightly dilutive to PayPal's non-GAAP earnings per share for 2016. PayPal intends to fund the deal with cash on its balance sheet.
Tags: money
digital
transfer
paypal
Category:Telecommunications