Dallas, Texas 07/02/2015 (Financialstrend) – Xoom Corp (NASDAQ:XOOM) is being acquired by the popular online payment company PayPal Inc for $890 million dollars. With the acquisition PayPal’s market share has seen a steep rise with an estimated value of $600billion a year. PayPal paid $25 for each share of Xoom with the deal amounting to $890 million
Xoom Corp (NASDAQ:XOOM) was one of the most popular money transfer companies helping customers transfer money online from one country to another. The company’s business is spread across 37 countries including Mexico, USA, Brazil, and India. Users who have their account with the company can transfer money online as well as track the transactions via text updates, email-notification, and online tracking on mobiles and desktops.
PayPal which deals with merchant payment service and acts as an online payment mode for purchases will now be extending its business activities by making online money transfers across international borders for 68 million U.S. customers. All PayPal customers can use the opportunity to not only make payments online but also transfer money online as PayPal has a good market share and is considered a safe mode of payment.
Xoom Corp (NASDAQ:XOOM) will have the opportunity to expand its business and grow internationally by joining hands with PayPal and delivering its services to PayPal’s customers.
As per the agreement, Xoom Corp (NASDAQ:XOOM) will be functioning as an independent company even after the acquisition by latter. The deal is expected to be completed by fourth quarter of this year.
The acquisition will be completely accepted by eBay Inc. (NASDAQ:EBAY) and PayPal will start working as an independent publicly traded company. PayPal will be trading on NASDAQ from 20th July, 2015 with the trade symbol “PYPL.” Shares of Xoom Corp (NASDAQ:XOOM) have reacted positively and are up by 22.32% to currently trade at $25.31.