PayPal Completes Xoom Acquisition

By Lalita Clozel November 12, 2015, 11:44 a.m. EST 1 Min Read

PayPal has completed its purchase of Xoom in an $890 million stock deal, the San Jose-based online payment company announced Nov. 12.

The deal, first disclosed in July, will bring the 1.5 million active U.S. customers of the San Francisco person-to-person payment platform Xoom into the PayPal fold. In the 12 months ending Sept. 30, those users sent about $7.1 billion in transfers across 40 countries, according to PayPal's press release.

Xoom will operate separately under its new owner. Former Xoom chief executive John Kunze has joined PayPal’s executive staff and will report to PayPal CEO Dan Schulman.

PayPal hopes the acquisition will open up doors to the international remittance market. The company said it would not change its 2015 full-year guidance as a result of the purchase, though it expects non-GAAP earnings per share to be slightly diluted.

Reporter, American Banker

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