PayPal will pay C$3.35 per share in cash for TIO Networks
SmallCapPower | February 15, 2017: Shares of TIO Networks Corp. (TSXV: TNC) climbed 5% to $3.31 in early Wednesday trading after the Cloud-based multi-channel bill payment processing and receivables management provider announced that it has agreed to be acquired by PayPal Holdings, Inc. (NASDAQ: PYPL) for C$3.35 per share in cash, or a total consideration of approximately $304 million. The purchase price represents a premium of 25.2% to TIO’s 90-trading day volume-weighted average price as of February 13, 2017, and 22.6% to the 20-trading day volume-weighted average price as of January 9, 2017, the trading day immediately preceding the date TIO entered into exclusive negotiations with PayPal.
TIO Networks stock has surged 64% since becoming a SmallCapPower/Ubika Research client company on February 1, 2016.
“We founded TIO to make speed and access part of the bill payment experience for the underserved, and we believe that we have created affordable products to serve the needs of all customers. Our mission fits perfectly with PayPal’s vision to democratize money. As part of the PayPal team, we believe we will accelerate our growth through expanded distribution and continue increasing access to more billers and services,” said TIO Networks Chairman and CEO Hamed Shahbazi.
Mr. Shahbazi said he intends to remain with TIO, which will operate as a service within PayPal, for the foreseeable future. TIO Networks will continue to be headquartered in Vancouver, Canada. During fiscal 2016, TIO generated C$74.7 million in revenue and $10.6 million in adjusted EBITDA.
TIO shareholders, directors and officers, including funds managed by Core Innovation Capital, Napier Park Financial Partners, Edison Partners, Inter-Atlantic Advisors and Inductive Capital, representing approximately 50.4% of the issued and outstanding common shares have agreed to vote their shares in favour of the transaction, which is expected to close in the second half of 2017.
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