PayPal to Accelerate Entry into the Bill Pay
Market with Leading Multi-channel Bill Payment Processor
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.”
NOTES:
$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.
About PayPal
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 join the conversation on
Twitter and Facebook.
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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170718005456/en/
For PayPalInvestors:Gabrielle RabinovitchVice
President, Investor
Relationsgrabinovitch@paypal.comorMedia:Amanda Miller,
408-219-0563Director, Corporate
Communicationsamanmiller@paypal.comorFor
TIOInvestors:investor@tio.com