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PayPal is buying Xoom for $25 a share, in an all-cash deal, the companies said Wednesday. Xoom operates as an international money-transfer player. Following a trading halt, Xoom shares
resumed extended hours trading around 6 p.m. ET and spiked as much as 25 percent. Read MoreMobile payments are making people tip more at restaurants Models for KDDI Corp. pose with a
Motorola XOOM tablet device manufactured by Motorola mobility Inc. Haruyoshi Yamaguchi | Bloomberg | Getty Images At $25 per share, PayPal would shell out about $975 million in the deal. The
price represents a premium of about one-third over Xoom's three-month volume-weighted average. "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," said PayPal President Dan Schulman in a statement. PayPal, which is currently owned
by eBay, will become an independent public company this month.