TIO Networks, a cloud-based bill payment processor, is acquiring Softgate Systems, a New Jersey corporation and a provider of consumer retail bill payment solutions.
The acquisition, valued at USD $31 million, is expected to close later this year subject to satisfying applicable regulatory approvals and satisfaction of customary closing conditions.
The acquisition will stregthen TIO’s presence in the US. With the addition of Softgate, TIO will have an augmented national platform from which to provide extensive non-bank financial services to the unbanked, under-banked, and unhappily banked millennial population.
“We’re excited to join forces with TIO and create a new emerging competitor in the multi-channel bill payment and receivables processing marketplace,” said Rick Auletta, CEO of Softgate.
“We’re very excited to welcome Softgate as well as its valued management, employees, partners and clients to the TIO Family”, said Hamed Shahbazi, CEO of TIO Networks.
TIO has agreed to appoint Joe Allegra from Edison Partners and Steve Piaker from Napier Park Global Capital to its board upon the closing of the transaction.
On a pro-forma basis the combined companies have trailing 12-month revenues of more than $100 million.