PayPal Holdings, Inc. today have announced that a definitive agreement between the company and TIO Networks Corporation, a cloud-based multi-channel bill payment processing and receivables management company, has been made, under which PayPal will acquire TIO for $233 million USD. The said purchase price represents a premium of 25.2 percent to TIO's 90-trading day volume-weighted average price as of February 13, 2017, as well as 22.6 percent towards the 20-trading day volume-weighted average price as of January 9, 2017, where the trading day has immediately preceded the day that TIO entered into exclusive negotiations with PayPal.
About TIO - Leading Multi-Channel Bills Payment Processor
According to StreetInsider, TIO is a leading multi-channel bills payment processor in North America. The company has processed more than $7 billion USD in consumer bill payments in fiscal 2016.
TIO currently serves 14 million consumer bill pay accounts, as well as offering convenient solutions for expedited bill payment services towards financially underserved consumers. As of right now, the company has more than 10,000 supported billers as well as numerous direct relationships with billers, which enables TIO to quickly process telecom, wireless, cable and utility bill payments for every TIO customer.
PayPal Adding Another Service To Its Growing Platform
President and CEO of PayPal, Dan Schulman, said that by acquiring TIO and integrating bill payments into PayPal's global payments platform, the company adds yet another key service in their efforts to become a part of a consumer's everyday financial life. He also claims that more than 2 billion people worldwide do not have an affordable access towards basic financial services, which makes it difficult and expensive for consumers to carry out basic financial tasks, including bill payment.
According to MarketWatch, TIO's digital platform and physical network of agent locations will make paying bills faster, simpler, and more affordable to everyone. PayPal will present a new opportunity to extend this valuable service to its existing customers, as well as welcoming new billers and customers to PayPal's services.
