The bill-payment company TIO Networks Corp. has inked an agreement to acquire U.S.-based Globex Financial Services and its operating business Global Express Money Orders — a deal that will expand TIO's position in the bill-payment industry as well as its national footprint.
In a joint news release, the companies said they expect that revenue synergies will include the cross-selling of TIO's self-service kiosk, mobile payment and financial wallet technologies to an expanded customer base.
Once regulatory filings are completed later this year, the combined companies will offer bill payment services to millions of consumers across the U.S. and Canada, according to the release.
TIO will be funding the transaction with a combination of cash on hand, debt and $3 million in equity issued to Core Innovation Capital at a price of $0.35/share upon closing of the transaction.
"Underbanked consumers represent the next great market opportunity in the United States, and TIO has provided visionary and meaningful services to this emerging middle class for many years," said Arjan Schutte, founder and managing partner of Core Innovation Capital. "TIO's network of self-service kiosks and powerful web and mobile payment tools are a perfect fit for Globex and their deep penetration in the utility bill payment industry."
TIO CEO Hamed Shahbazi said he was eager to welcome Globex Express and its employees and partners to the TIO family.
"The combination of TIO and Global Express will create a formidable market leader in key segments of the underbanked financial services marketplace," he said.
Read more about bill-payment kiosks.