PayPal and TIO Networks announced Tuesday (July 18) that PayPal has completed its previously announced acquisition of TIO Networks.
In a press release the companies said that PayPal is acquiring all of the outstanding shares of TIO for $3.35 CDN ($2.64 USD) per share in cash or an approximate $302 million CDN ($238 million USD) equity value. TIO will operate as a separate service within PayPal under the continued leadership of Hamed Shahbazi, VP of Bill Pay and General Manager, PayPal Canada Bill Pay Services. Shahbazi reports to John Kunze, VP of PayPal, and Leader of the Consumer Product Organization.
“In the last two years, PayPal has made significant strides towards realizing our mission to democratize financial services and provide secure, convenient and affordable ways to move and manage money to those who are underserved by the financial system,” said Dan Schulman, President & CEO of PayPal in the press release. “Expanding into multi-channel bill payments through the acquisition of TIO furthers this mission and will meaningfully advance our ability to offer digital financial services to tens of millions of underserved customers.”
TIO is a leading multi-channel bill payment processor in North America and processed more than $7 billion in consumer bill payments in fiscal 2016. TIO serves 16 million consumer bill pay accounts and offers solutions for expedited bill payment services to financially underserved consumers. The company has more than 10,000 supported billers and numerous direct relationships with billers, which enable TIO to quickly process telecom, wireless, cable and utility bill payments for TIO’s customers. Through this acquisition, PayPal will expand its global scale of operations, complement its product portfolio and accelerate its entry into the bill pay market, enabling millions of customers to improve their financial health through access to TIO’s valuable services. The acquisition enables PayPal and TIO to realize the companies’ shared vision of reimagining money and democratizing financial services so that everyone has affordable ways to manage and move their money.