October 26, 2015
The payments industry has continued to witness massive acquisitions in 2015, repeating the trend from last year. The fast-growing payments industry is attracting many players too because of the opportunity it provides. Payments companies see acquisitions as a strategy to acquire technical know-how and also as a faster alternative to establishing R&D teams and building new products from the scratch.
Many payment companies have focused on acquiring technology providers; this shows a strong interest in providing technology-based services to customers. Payment companies are focusing on digital technologies such as mobile payments, cloud-based services, biometric authentication and other modern methods meet the expectations of the digital generation.
PayPal Acquires Xoom:
PayPal, Inc. and Xoom Corporation announced a definitive agreement under which PayPal will acquire Xoom for $25 per share in cash or an approximate $890 million enterprise value. Upon closing of the acquisition, Xoom will operate as a separate service within PayPal. The acquisition is expected to close in the fourth quarter of 2015 and is subject to customary closing conditions, including Xoom stockholder approval, the expiration or early termination of the applicable pre-merger waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and the receipt of certain consents relating to Xoom’s money transmitter licenses.
Samsung Electr ...