PayPal Inc. has announced that it will be buying international digital money transfer provider Xoom of San Francisco in a deal valued at $890 million cash, or 25 dollars per share. This is the second acquisition for PayPal, as the company had previously acquired peer-to-peer payment service provider Venmo in 2013.

TechCrunch reports that PayPal's acquisition of Xoom will allow the Internet financial giant to increase its reach across Xoom's worldwide network, including operations in the United States, Australia, Spain and the United Kingdom. In return, Xoom will also gain access to PayPal's users, which already numbers about 68 million users in the United States and about 165 million worldwide.

Dan Schulman, President of PayPal, Inc., revealed some details on the said acquisition. He said that "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," 

According to Schulman, Xoom's money transfer business presence in 37 countries, including Mexico, India, the Philippines, China and Brazil, will help PayPal expand its business interests in those markets.

John Kunze, President and CEO of Xoom, agrees. "Being part of a larger, global organization will help us deliver the best possible experience to our customers, while maximizing value for our shareholders." According to the PayPal blog, Xoom has helped transfer approximately $7 Billion to customers around the world as of the year ending March 31, 2015.

PayPal's buyout of Xoom represents a 32% premium over the company's three-month volume-weighted average price. Marketwatch reports that the activity of Xoom's stock jumped in the extended session on Wednesday after PayPal's announcement of the buyout, surging to 25% to $25.55.

Upon completion of the acquisition, expected to happen in late 2015 pending customary closing conditions including regulatory and Xoom shareholder approval, Xoom will operate as a separate service within PayPal's umbrella.