PayPal acquires Vancouver-based TIO Networks in $304M deal

One of the world’s largest payments processors is making a play for B.C.

PayPal Holdings Inc. (NASDAQ:PYPL) is acquiring Vancouver-based TIO Networks in a deal worth $304 million.

article continues below

The companies announced the definitive sales agreement Tuesday (February 14), which will see PayPal pay $3.35 per share in cash — a 22.6 per cent premium above its 20-trading day average price.

TIO Networks chairman and CEO Hamed Shahbazi told Business In Vancouver he was “very excited” his company was becoming a part of the PayPal family.

“It’s an incredible company,” he said.

“Dan Schulman, the [PayPal] CEO, has a tremendous vision that really aligns well with us and his vision of financial inclusion is one we think gives us an opportunity to really amplify the scale in which our platform operates.”

TIO Networks offers online and mobile solutions for bill payments, processing more than US$7 billion in fiscal 2016.

In 2015, it acquired New Jersey-based Softgate Systems for $31 million.  Shahbazi said at the time the deal would create North America’s largest walk-in bill payment network.

Walk-in bill payment networks assist customers lacking access to mobile or online payment options, usually older individuals or new immigrants.

The Softgate acquisition helped expand TIO Network’s footprint in the U.S. from 15 states to 46 states.

But Shahbazi said coming under the umbrella of PayPal means an even wider expansion of the Vancouver company’s services.

“They [PayPal] function in many more countries and with many more customers, so the opportunity to be in a position to serve those customers with bill payment services is one that we found to be just extremely attractive.”

TIO Networks will remain headquartered in Vancouver and Shahbazi told BIV he plans to stick around to lead the company for the foreseeable future.

“It’s just a huge opportunity for everyone here, including me, to work with a world-class Fortune 500 company and become a piece of their platform.”

PayPal’s online money transfer service has 188 million consumers operating in 203 markets across the globe.

It partnered with the BC Tech Association in October 2015 to create a formalized financial technology cluster in Vancouver to help fintech startups innovate and generate revenue.

Alexander Peh, PayPal Canada’s head of mobile, told BIV in October 2016 his company's strategy is geared towards collaborating with as opposed to competing against smaller financial technology companies.

The acquisition is expected to close in the second half of 2017 and has already been approved by the boards of both PayPal and TIO Networks.

torton@biv.com

@reporton

For business news go to biv.com

Read Related Topics

© 2018 Vancouver Courier
Click here to take part in our readers survey

Read more from the Business in Vancouver

Comments

NOTE: To post a comment you must have an account with at least one of the following services: Disqus, Facebook, Twitter, Google+ You may then login using your account credentials for that service. If you do not already have an account you may register a new profile with Disqus by first clicking the "Post as" button and then the link: "Don't have one? Register a new profile".

The Vancouver Courier welcomes your opinions and comments. We do not allow personal attacks, offensive language or unsubstantiated allegations. We reserve the right to edit comments for length, style, legality and taste and reproduce them in print, electronic or otherwise. For further information, please contact the editor or publisher, or see our Terms and Conditions.

comments powered by Disqus

Popular Vancouver Courier

Sign Up For Our e-Newsletter!
Find the Vancouver Courier Newspaper