Xoom Corporation Acquires BlueKite for $15M
Xoom Corporation (Nasdaq: XOOM), a leading digital money transfer provider, today announced it has acquired BlueKite, LTD, a cutting edge technology company that develops solutions and applications to improve the way people around the world pay their bills. Xoom acquired BlueKite for approximately $15 million in cash and equity.
BlueKite has built a robust technology platform for cross-border bill payments and mobile phone top ups. This acquisition will allow Xoom to offer adjacent services to their burgeoning money transfer offerings, with the ability to pay bills for their loved ones, as well as top-up mobile phones. By facilitating safe, reliable and accurate cross-border bill payments, Xoom will be able to help its customers take even better care of family members back in their home country. Guatemala City-based BlueKite currently has 30 employees.
"I am very pleased to announce that Xoom has acquired this exciting, young company, BlueKite. By adding these services, Xoom continues to broaden our relationship with our customers, and in so doing, create greater lifetime value and increased loyalty to the Xoom brand," said John Kunze, President and CEO for Xoom. "We're excited to build out bill pay and top-up services and enlarge and strengthen the Xoom team with our new development center in Guatemala City. This development center will also augment our San Francisco product and development efforts."
Bobby Aitkenhead, former CEO of BlueKite, will report to Kunze as vice president in charge of Xoom Bill Pay and Xoom Top Up. "Xoom's online and mobile platforms are disrupting traditional forms of money transfer, and we are thrilled to be part of the Xoom team," said Aitkenhead. "The people, technology, consumer reach, and brand appeal are a perfect fit for our company. We all look forward to a great future together and contributing to Xoom's mission of offering customers convenient, fast and cost-effective ways to send money." Initial product services will be announced later this year.
Xoom is a leading digital money transfer provider in 31 countries, focused on helping consumers send money in a secure, fast and cost-effective way using their mobile phone, tablet or computer. During the year ended December 31, 2013, Xoom's more than one million active customers sent more than $5.5 billion to family and friends. The company is headquartered in San Francisco and can be found online at www.xoom.com.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 relating to, among other things, expectations, plans and prospects for Xoom, including, but not limited to, its expectations regarding its expansion into new markets, ability to improve the way people around the world pay their bills and market demand for bill pay products. These forward-looking statements are based upon the current expectations and beliefs of Xoom's management as of the date of this press release, and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. All forward-looking statements made in this press release are based on information available to Xoom as of the date thereof, and Xoom disclaims any obligation to update these forward-looking statements.
In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: the evolving nature of the industry in which Xoom operates; its failure to attract new customers or retain existing customers; economic, political or regulatory factors beyond its control, in the U.S. or in countries to which its customers transfer money and pay bills; fluctuations in foreign exchange rates; competitive pricing and marketing strategies by competitors; the adoption of competing technologies that supplant its services; the failure of partners to disburse funds according to Xoom's instructions; declines in customer confidence in its business or in money transfer providers generally; potential breaches of its security systems; and other risks and uncertainties.
For a detailed discussion of these and other cautionary statements, please refer to the risk factors discussed in filings with the U.S. Securities and Exchange Commission ("SEC"), including but not limited to Xoom's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2013, Xoom's Registration Statement on Form S-1 declared effective on September 10, 2013, and any subsequently filed reports on Forms 10-K, 10-Q and 8-K. All documents are available through the SEC's Electronic Data Gathering Analysis and Retrieval system ("EDGAR") at www.sec.gov or Xoom's website at www.xoom.com.
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