Payment giant Paypal Holdings Inc. (NASDAQ:PYPL) has completed its acquisition of Vancouver-based TIO Networks Corp (TSX-V:TNC), the companies announced July 18.
TIO will operate as a separate service within PayPal. TIO CEO Hamed Shahbazi will continue to lead the operation as vice-president of bill pay and general manager of PayPal Canada Bill Pay Services.
PayPal and TIO said the acquisition supports both companies’ shared vision of “reimagining money and democratizing financial services.”
“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,” PayPal president and CEO Dan Schulman said in a 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.”
Per the terms of the acquisition agreement, which was announced in February, PayPal purchased all outstanding TIO shares for $3.35 per share in cash, bringing the total value of the deal to $302 million. At the time of the agreement, this represented a 22.6% premium above the 20-trading day average price. Prior to completion of the transaction, TIO shares were trading at $3.33 per share.
After completing an acquisition of New Jersey-based Softgate Systems in 2015, TIO had a network presence in 46 states south of the border.
In 2016, TIO Networks processed US$7 billion worth of transactions in 60 million online and mobile bill payments.
- With files from Tyler Orton