Dan Schulman, President and CEO Designee, PayPal
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There has never been a more exciting time to be in payments. Mobile technology is creating an unprecedented opportunity to completely reimagine how money works and how it moves around the world. As the world’s open technology payments platform, PayPal is leading the innovation that is disrupting and reinventing payments. We processed 1 billion mobile payments for people in 2014, giving them simpler and safer ways to manage and move their money with the technology they love to use.
I’m excited to announce that PayPal is ready to make another area of payments better for people around the world – international remittances. Today, this primarily cash-based system of sending money abroad can be time-consuming, insecure and expensive. There is no more personal payment experience than sending your hard-earned money home to help the people you love. Making international remittances simpler, safer and more affordable is something PayPal is excited to do for our customers.
To help us enter this market with speed and to offer our customers a great experience, we have signed an agreement to acquire Xoom, a leading digital money transfer provider. Xoom helps its 1.3 million active customers in the United States send money to and pay bills for family and friends in 37 countries around the world in a secure, fast and cost-effective way, using their mobile phone, tablet or computer.
We believe this acquisition will allow PayPal to quickly expand into the large and growing global money transfer market. The acquisition aligns with our strategic vision to make the movement and management of money better for people, helping our customers find new and exciting ways to use PayPal, everyday.
Headquartered in San Francisco, Xoom has what we believe is the most advanced technology platform in this space with a majority of its transactions taking place on mobile devices. Xoom helped customers send approximately $7 billion to loved ones around the world during the 12 months ended March 31, 2015.
This deal brings significant expected benefits to both PayPal and Xoom. For PayPal, acquiring Xoom will allow us to offer more services to our global customer base and help accelerate our expansion in key international geographies, including Mexico, India, the Philippines, China and Brazil.
For Xoom, joining PayPal will help increase how quickly it can expand into new markets and accelerate the ways the company can innovate for customers. PayPal will also help Xoom grow by offering Xoom’s services to our 68 million active U.S. customers.
We expect the transaction to close in the fourth quarter of 2015, subject to customary closing conditions including regulatory approval and Xoom shareholder approval. After the deal closes Xoom will operate as a separate service within PayPal.
We are very excited to welcome Xoom’s more than 300 employees to the PayPal family. And we are even more excited to take another step forward in our strategy to help money work for people, not the other way around.
Forward Looking Statements
This announcement contains forward-looking statements, including statements about the expected impact of this transaction on PayPal’s and Xoom’s financial and operating results and business, the operation and management of Xoom after acquisition, the anticipated funding for the transaction, and the timing of the closing of the acquisition. Although PayPal and Xoom believe that the assumptions upon which their respective forward-looking statements are based are reasonable, these statements involve risks and uncertainties, and actual results could differ materially from those discussed. Factors that could cause or contribute to such differences include, but are not limited to, the receipt and timing of regulatory approvals for the transaction, the possibility that the transaction may not close, the reaction to the transaction of Xoom’s customers and business partners, the reaction of competitors to the transaction, the retention of Xoom employees, PayPal’s plans for Xoom, economic conditions in the global markets in which PayPal and Xoom operate, the future growth of Xoom’s and PayPal’s businesses and the possibility that integration following the transaction may be more difficult than expected.
More information about these and other factors can be found in PayPal Holdings, Inc.’s Registration Statement on Form 10, as amended from time to time, and its future periodic filings, and Xoom’s most recent Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other periodic filings. Neither PayPal nor Xoom accept any responsibility for any financial or operational information contained in this press release relating to the business, results of operations or financial condition of the other. Each of PayPal and Xoom expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
More information about these and other factors can be found in PayPal Holdings, Inc.’s Registration Statement on Form 10, as amended from time to time, and its future periodic filings, and Xoom’s most recent Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other periodic filings. Neither PayPal nor Xoom accept any responsibility for any financial or operational information contained in this press release relating to the business, results of operations or financial condition of the other. Each of PayPal and Xoom expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.