PayPal to acquire TIO Networks for $304M

PayPal Holdings, Inc. (NASDAQ: PYPL) have entered into a definitive agreement to acquire TIO Networks Corp. (TSX-V: TNC) for $304 million.

PayPal will acquire TIO for $3.35 or US $2.56 per share in cash or an approximate $304 million or US $233 million equity value.

TIO is a leading multi-channel bill payment processor in North America and processed more than US $7 billion in consumer bill payments in fiscal 2016.

For the fiscal year ended July 31, 2016, TIO generated $74.7 million in revenue and $10.6 million in adjusted EBITDA.

Core Innovation Capital I, LP is TIO largest shareholder, holding 9,802,909 common shares (11.26%)

Core Innovation Capital, Napier Park Financial Partners, Edison Partners, Inter-Atlantic Advisors, Inductive Capital, directors and officers, TIO shareholders, representing approximately 50.4% of the issued and outstanding common shares have agreed to vote their shares in favor of the transaction.

Perella Weinberg Partners LP is acting as financial adviser to PayPal, and Sidley Austin LLP and Blake, Cassells & Graydon LLP are acting as legal advisers on the transaction. Raymond James Ltd. is acting as financial adviser to TIO, and Davies Ward Phillips & Vineberg LLP, and Fasken Martineau DuMoulin LLP and Morrison & Foerster LLP, are acting as legal advisers for the TIO Special Committee and TIO, respectively.

photo credit: TIO Networks

Ted Liu

Ted Liu, M.Sc. (Mining, Queen's), MBA (Finance, Toronto), is the Editor of Private Capital Journal, CanadaMetals.ca, TechWire.ca, and the former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, having most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA).

Ted is the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, Canada's most sophisticated and advanced all private capital and public market financing database.