PayPal Completes Acquisition of TIO Networks
PayPal to Accelerate Entry into the Bill Pay Market with Leading
Multi-channel Bill Payment Processor
SAN JOSE, Calif. & VANCOUVER, B.C.--(BUSINESS WIRE)--
PayPal Holdings, Inc. (NASDAQ:PYPL) and TIO Networks Corp. (TSXV:TNC)
today announced that PayPal has completed its previously announced
acquisition of TIO Networks. In accordance with the terms of the
Arrangement announced on February 14, 2017, PayPal acquired 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, reporting to John Kunze, VP of PayPal, and
Leader of the Consumer Product Organization.
TIO is a leading multi-channel bill payment processor in North
America and processed more than $7 billion USD in consumer bill payments
in fiscal 2016. TIO serves 16 million consumer bill pay accounts* and
offers convenient 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.
As complementary organizations, PayPal and TIO are well-positioned to
make paying a bill as fast and simple as making a payment with PayPal.
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.
"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. "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."
$1 CAD = $0.788 USD
* Consumer bill pay accounts represent the total number of accounts
between consumers and billers. A consumer may have a relationship with
more than one biller and may have more than one account.
Fueled by a fundamental belief that having access to financial services
creates opportunity, PayPal (Nasdaq: PYPL) is committed to democratizing
financial services and empowering people and businesses to join and
thrive in the global economy. Our open digital payments platform gives
PayPal's 203 million active account holders the confidence to connect
and transact in new and powerful ways, whether they are online, on a
mobile device, in an app, or in person. Through a combination of
technological innovation and strategic partnerships, PayPal creates
better ways to manage and move money, and offers choice and flexibility
when sending payments, paying or getting paid. Available in more than
200 markets around the world, the PayPal platform, including Braintree,
Venmo and Xoom, enables consumers and merchants to receive money in more
than 100 currencies, withdraw funds in 56 currencies and hold balances
in their PayPal accounts in 25 currencies. For more information
on PayPal, visit https://www.paypal.com/about.
For PayPal financial information, visit https://investor.paypal-corp.com.
About TIO Networks
TIO is a cloud-based multi-channel bill payment processing and
receivables management provider, serving the largest telecom, wireless,
cable, and utility bill issuers in North America. TIO integrates with
the back office of billing systems to accept, validate, and collect
payments via self-service kiosk, retail walk-in, mobile, and web
solutions. With approximately 60 million transactions processed in
fiscal 2016 and a processing network that serves more than 10,000
billers, TIO symbolizes fast, convenient, and secure access to expedited
bill payment services.
Visit www.tionetworks.com or
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Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
This announcement contains "forward-looking" statements within the
meaning of applicable securities laws. Forward-looking statements and
information relate to future events and future performance and reflect
PayPal's expectations regarding the impact of this transaction on its
financial and operating results and business and the operation and
management of TIO after the acquisition. Forward looking statements may
be identified by words such as "seek", "believe", "plan", "estimate",
"anticipate", expect", "intend", and statements that an event or result
"may", "will", "should", "could", or "might" occur or be achieved and
any other similar expressions.
Forward-looking statements involve risks and uncertainties which may
cause actual results to differ materially from the statements made.
Factors that could cause or contribute to such differences include, but
are not limited to, PayPal's plans for TIO, economic and political
conditions in the global markets in which PayPal and TIO operate, the
future growth of PayPal's and TIO's businesses and the possibility that
integration following the transaction may be more difficult than
expected. More information about these and other factors can be found in
PayPal Holdings, Inc.'s most recent Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other
filings with the Securities and Exchange Commission (the "SEC"), and its
future filings with the SEC.
There are no assurances PayPal can fulfill forward-looking statements
and information. Such forward-looking statements and information are
only predictions based on current information available to the PayPal
management team as of the date that such predictions are made; actual
events or results may differ materially as a result of risks facing
PayPal, some of which are beyond PayPal's control. Although PayPal
believes that any forward-looking statements and information contained
in this press release are based on reasonable assumptions, readers
cannot be assured that actual outcomes or results will be consistent
with such statements. Accordingly, readers should not place undue
reliance on forward-looking statements and information.
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Vice President, Investor Relations
Director, Corporate Communications
Source: PayPal Holdings, Inc.
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