PayPal is acquiring TIO Networks, a cloud-based multi-channel bill payment processing and receivables management company based in Vancouver.
The deal is valued at $304 million, a 25% premium over TIO’s share price.
TIO processed more than $7 billion USD in consumer bill payments in fiscal 2016.
“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,” Dan Schulman, President and CEO of PayPal, said. “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.”
“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,” Hamed Shahbazi, Chairman and CEO of TIO, remarked. “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.”
“TIO’s digital platform and physical network of agent locations make paying bills simpler, faster, and more affordable,” Schulman added. “We are excited by the opportunity to extend this valuable service to our existing customers and welcome new billers and customers to PayPal.”