Acquisition significantly expands and diversifies TIO's customer base, geographic reach and product offerings
VANCOUVER, B.C. and SILVER SPRING, Md., Jan. 6, 2014 /CNW/ - TIO Networks Corp. (TSX-V: TNC) ("TIO"), North America's leading expedited bill payment company, announces that it has completed the acquisition of Globex Financial Services, Inc., (Globex), and its operating business Global Express Money Orders, Inc. ("Global Express").
The acquisition of Globex Financial Services transforms TIO's position in the payments industry.
From a customer perspective, Globex adds a large stable of well-known and highly respected billers to TIO's business. These new billers along with TIO's existing customers firmly establish the combined Company as a national leader in payment processing for the utility sector, while maintaining its strong presence in the wireless Industry. Geographically, the acquisition greatly strengthens TIO's presence in the Mid-Atlantic and Southeastern United States by adding key billers and over 3,000 additional transaction locations to TIO's growing national network.
Globex significantly expands TIO's capabilities as it provides TIO with a suite of walk-up financial services, Money Transmitter Licenses in 14 states and innovative mobile web payment programs and payment processing capabilities for the rental housing industry. Together, with TIO's existing product offerings in mobile payments, electronic wallets, kiosks and bill payments, the combined Company will be positioned to offer its customers a comprehensive and highly advanced product set.
Some key pro forma operating and financial highlights of the combined Company include:
- In calendar year 2013, the combined company processed approximately 34 million bill payments and money order transactions worth over $4 billion.
- On a pro forma basis, the Company is expected to generate revenues in excess of $45M and gross margin in excess of $17M in calendar 2014.
- The acquisition is expected to be accretive to TIO's fiscal 2014 operating results.
- Post-acquisition, TIO will have 130 full-time employees in North America.
"The closing of the Globex acquisition is a tremendous achievement and a significant milestone in TIO's business," stated Hamed Shahbazi, Chairman and CEO of TIO Networks. "This acquisition is a true game-changer as it strengthens our platform and enables tremendous new opportunities for growth. We are excited to welcome the talented women and men of Global Express to the TIO family. Thank you for your support of this initiative."
"We are proud to be joining the TIO family, and are excited about being part of a growing powerhouse in the payments industry," stated Randy Mersky, CEO of Globex Financial Services. "Together we have an innovative product line that is positioned for incredible growth."
Randy Mersky, President of Globex and Global Express and the largest shareholder of Global, will remain as president of Global Express. As disclosed on July of 12, 2013, TIO funded the transaction with a combination of cash on hand, debt and the completion of a previously announced private placement in the amount of $3 million by an issuance of equity to Core Innovation Capital in the amount of $3 million pursuant to which Core was issued 8,571,428 common shares.
TIO Networks has received all required State and TSX-V regulatory approvals to complete the transaction.
About TIO Networks Corp
TIO is a cloud-based bill payment processor serving the largest telecom, wireless, cable and utility bill issuers in North America. With more than 60,000 endpoints to its processing network, TIO symbolizes fast, convenient and secure bill paying. For more information visit: www.TIOnetworks.com. Join the conversation on www.twitter.com/tionetworks or like us on www.facebook.com/TIONetworks.
About Globex Financial Services, Inc.
Established in 1963, Globex Financial Services, Inc. is one of the largest money order, bill payment and prepaid wireless companies operating through thousands of retail locations in the U.S. Globex Financial Services, Inc. has processed millions of "real-time" walk-in bill payments for utility companies, merchants and municipalities. For more information on Global Express visit: www.globalexpress.net
The TSX Venture Exchange has not reviewed this news release and does not accept responsibility for its adequacy and accuracy.
This news release contains certain forward-looking statements and information (collectively, "forward-looking statements") within the meaning of applicable Canadian securities laws, including, without limitation, the acquisition by TIO of Globex Financial Services and its operating business, Global Express ; the effect of the acquisition on TIO including the expected strengthening of TIO's position in the bill payment industry; timing and nature of expected synergies; the expected market for the companies; expected higher revenues and gross margins; expected increase in the percentage of revenues and margins to the utility industry; expanded revenue base; the anticipated accretive nature of the transaction; the formation of a key market leader; Forward-looking statements, which may be identified by words including, without limitation, "will", "anticipated", "expected", "to create", "to make", "to join", "look forward", and other similar expressions, are intended to provide information about management's current plans and expectations regarding the transaction.
Although TIO believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties that may cause actual results or events to differ materially from those anticipated and no assurance can be given that these expectations will be realized, and undue reliance should not be placed on such statements. Risk factors that could cause actual results or events to differ materially from the forward-looking statements include, without limitation, that TIO's assumptions in making forward-looking statements may prove to be untrue; future results varying from historical results; and competition.
Certain material factors or assumptions are applied in making the forward-looking statements, including, without limitation, the assumption that future results, including without limitation, sales and financial results, will be similar to past results; expectations related to future general economic and market conditions; the assumption that no adverse material changes will occur in the businesses to be acquired or the markets in general; and that the timing of events will occur as anticipated. Forward-looking statements and information are based on the beliefs, assumptions and expectations of TIO's management on the date of this news release, and TIO does not assume any obligation to update any forward-looking statement or information should those beliefs, assumptions or expectations, or other circumstances change, except as required by securities law.
SOURCE: TIO Networks Corp.
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