PayPal to Enter International Remittances Market with Leading
SAN JOSE, Calif. & SAN FRANCISCO--(BUSINESS WIRE)--
PayPal, Inc. (NASDAQ:PYPL) and Xoom Corporation (NASDAQ: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
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.
At PayPal (Nasdaq: PYPL), we put people at the center of everything we
do. Founded in 1998, we continue to be at the forefront of the digital
payments revolution, last year we processed 4 billion payments, of which
1 billion were made on mobile devices. PayPal gives people better ways
to connect to their money and to each other, helping them safely access
and move their money and offering a choice of how they would like to pay
or be paid. With our 173 million active customer accounts, we have
created an open and secure payments ecosystem that people and businesses
choose to securely transact with each other online, in stores and on
mobile devices. PayPal is a truly global payments platform that is
available to people in 203 markets, allowing customers to get paid in
more than 100 currencies, withdraw funds to their bank accounts in 57
currencies and hold balances in their PayPal accounts in 26 currencies.
For more information on PayPal, visit about.paypal-corp.com.
For PYPL financial information visit www.investor.paypal-corp.com.
Xoom is a leading digital money transfer provider that enables consumers
to send money, pay bills and send prepaid mobile phone reloads for
family and friends around the world in a secure, fast and cost-effective
way, using their mobile phone, tablet or computer. During the 12 months
ended September 30, 2015, Xoom's 1.5 million active customers sent
approximately $7.1 billion with Xoom. The company is headquartered in
San Francisco and can be found online at www.xoom.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20151112005780/en/
Director, Corporate Communications
Source: PayPal, Inc.
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