Online payments titan PayPal said Wednesday it is buying international money-sending service Xoom in a deal valued at $890 million. PayPal, a subsidiary of U.S. online marketplace giant eBay, will pay $25 per share of Xoom in what amounts to a premium of 32 percent over the stock's average price over the past three months. PayPal touted Xoom as a leading service for letting people in the U.S. pay bills or send money to family members or friends in other countries using mobile phones, tablets or computers. Acquiring Xoom will let PayPal broaden its array of services and expand in important markets, particularly China, Brazil, India, Mexico and the Philippines, according to Schulman. Xoom has a presence in 37 countries. "Becoming part of PayPal represents an exciting new chapter for Xoom, which will help accelerate our time-to-market in unserved geographies and expand the ways we can innovate for customers," said Xoom CEO John Kunze. The acquisition is expected to close in the final quarter of this year.
