On July the 18th, PayPal Holdings (NASDAQ: PYPL) confirmed that their recently announced acquisition of TIO Networks had been completed. The terms of the arrangement were announced on February the 14th of this year. PayPal has now acquired all outstanding shares of TIO for $3.35 CDN or $2.64 USD per share. The acquisition equates to roughly $238 million USD in total. PayPal’s recent press release confirms that TIO will continue to operate as a separate service within PayPal.
The operation will be headed by Hamed Shahbazi. He will report to VP of PayPal, John Kunze. TIO is a leading multi-channel bill payment processor that services the North American market. During the 2016 fiscal year, TIO processed more than 7 billion USD in consumer bill payment. They currently handle around 16 million consumer bill pay accounts and deliver convenient solutions for expedited bill payment services.
At this point in time, TIO works with 10,000 supporter billers. They have numerous direct relationships with billers giving them the ability to quickly process payments for telecom, cable, utility, and wireless bills. PayPal and TIO will work together are complementary organizations. They’ll aim to make paying a bill as convenient and quick as making a payment through the PayPal platform.
Simultaneously, the acquisition will help PayPal expand its global scale, complements its current product portfolio and speed up its entry into the bill pay market. PayPal also believes the acquisition will enable customers to enhance their financial health by using TIO’s services. Additional details can be found here.