California based online payments giant Paypal has agreed to acquire Canadian payment management company TIO Networks for $233 million. Paypal believes this acquisition will allow them to reach previously underserved parts of North America.
While they were unable to offer specifics on integration plans, the idea of bringing cash transactions to PayPal digital accounts is a concept that the company has been working on. The team has been developing PayPal Cash which makes it easier to convert your cash into online payments. TIO processed about $7 billion in bill payments last year for its 14 million customers, throughout its 65,000 retail locations. Their mission is to make it more convenient and affordable for customers to pay bills. The Vancouver-based company went public on the Toronto Stock Exchange in the dot-com boom and was trading about 25% beneath the acquisition price in recent months. PayPal ultimately offered about $2.56 per share, with the deal expected to close later this year.