PayPal Holdings announced Tuesday (Feb. 14) that it has acquired TIO Networks, the cloud-based multichannel bill payment processing company, for $2.56 a share, or $233 million. PayPal said in a press release the purchase price represents a 25.2 percent premium to TIO’s 90-day volume-weighted average price as of Feb. 13.
Dan Schulman, president and CEO of PayPal, said: “By acquiring TIO and integrating bill payment into our global payments platform, PayPal adds another key service in our efforts to become a part of a consumer’s everyday financial life. Worldwide, more than 2 billion people do not have affordable access to basic financial services, making it difficult and expensive for consumers to carry out basic financial tasks, including bill payment. TIO’s digital platform and physical network of agent locations make paying bills simpler, faster and more affordable. We are excited by the opportunity to extend this valuable service to our existing customers and welcome new billers and customers to PayPal.”
According to PayPal, TIO Networks processed more than $7 billion in consumer bill payments in fiscal 2016 and serves 14 million consumer bill pay accounts. Because TIO has more than 10,000 supported billers and direct relationships with several billers, it can quickly process telecom, wireless, cable and utility bill payments. Using TIO’s approximately 900 operated self-service kiosks, approximately 65,000 retail walk-in locations and mobile and web solutions, customers can pay their bills and avoid service interruptions and financial penalties associated with missed payment deadlines, PayPal said in the release.
“We founded TIO to make speed and access part of the bill payment experience for the underserved, and we believe that we have created affordable products to serve the needs of all customers,” said Hamed Shahbazi, chairman and CEO of TIO, in the same release. “Our mission fits perfectly with PayPal’s vision to democratize money. As part of the PayPal team, we believe we will accelerate our growth through expanded distribution and continue increasing access to more billers and services.”