PayPal pushes into bill-pay market with $238M TIO purchase
July 19, 2017
PayPal (NASDAQ: PYPL) has completed its purchase of TIO Networks (TSXV: TNC), which comes on the heels of PayPal adding Samsung Pay to its US network and expanding an existing partnership with Visa into Europe earlier this week. PayPal paid C$3.35 for each TIO share, representing roughly C$302 million (about $238 million) in equity value. The acquisition represents a concerted push from PayPal into the bill-pay market.
TIO integrates with back-office billing systems to offer multichannel bill payment processing and receivables management services, working with North American bill issuers in the telecom, wireless, cable and utility industries. The company processed more than $7 billion in consumer bill payments in 2016, and it services 16 million consumer bill pay accounts.
The deal bucks the wider trend in corporate M&A activity in global fintech. Dealmaking in the space has fallen off once again this year, per the PitchBook Platform, with 111 transactions completed so far versus 2015's record-setting 266. And with a pipeline of just 37 deals in the works, deal count will likely lag behind last year's 219 completed deals.