PayPal is looking to expand its horizons through this acquisition.
The San Francisco based online money transfer-based company known as Xoom has been acquired by PayPal for an amount of $890 million.
Having a presence in almost all corners of the world, PayPal was questioned over its motive behind this acquisition, to which it responded by saying:
“Acquiring Xoom allows PayPal to offer a broader range of services to our global customer base, increase customer engagement and enter an important and growing adjacent marketplace. Xoom’s presence in 37 countries – in particular, Mexico, India, the Philippines, China and Brazil – will help us accelerate our expansion in these important markets.”
Xoom was only declared public in 2013, but it has been in existence for almost 14 years. Initially, the company had to raise $78 million through outside funding where it was sponsored by New Enterprise Associates, Glynn Capital Management, Sequoia Capital, and Fidelity Ventures.
The company was doing fine until earlier this year, when it hit a bump in the road. It was revealed that $30.8 million costs during the fourth quarter were related to suspected impersonation of an employee.
Despite this issue, the shares of Xoom weren’t affected as much as one might have expected as the company continued on to exist with steady share prices. As of yesterday, Xoom shares were costing $22 per share.
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