Xoom, the online service for sending money to friends and family, is in talks with Paypal and the reports suggest that Paypal has agreed to pay $25 per share or a total of $890 Million in cash to buy the San Francisco based company which went public in 2013.
A release from Paypal, which went live a few hours back stated, “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, a 14 year old company has been a good alternative for the personal payment transfers and as PayPal is known for receiving and sending commercial payments, this deal will give PayPal an edge over the other competitors like Remitly, Currencyfair etc.
Before going public in 2013, Xoom had raised $78 million from investors including Glynn Capital Management, Sequoia Capital, New Enterprise Associates, and Fidelity Ventures. After going public, the company has been growing on a steady rate, despite of a series of issue following which, the CFO of the company had to resign. However Xoom had stated that the resignation of the CFO wasn’t a result of the inside activities which were going in the company.
The founding CEO of Xoom, Kevin Hartz went on to build EventBrite (the online ticketing solution) and he remains CEO there.
Xoom has been on a roller caster since a bit of time. In 2013, the company shares were trading at a peak price of $34 per share, which went to $17 in January this year. However, at the time of announcement, the shares were trading at $22.
More details about the deal are still awaited, however, we can be assured about the online money transfer business getting to new heights in the coming time.