TIO Networks has acquired the assets of VeriFone Commerce Solutions Inc., a Web-based bill payment services provider also known as ChargeSmart.
The transaction closed at the beginning of this month for an undisclosed price, TIO said in an August 5 press release. VeriFone will temporarily retain some assets and provide operational services during a transition period.
TIO is focusing on expanding the ChargeSmart business and biller product portfolio while leveraging the company's risk management capabilities through its own lines of business, the company said.
TIO's consumer online and mobile businesses will be managed by the ChargeSmart team in San Francisco. Jake Cunningham, who was general manager of ChargeSmart, has been named vice president of consumer payments for TIO Networks.
TIO expects this purchase to give it a more diverse revenue base across customers, channels and industries, as well as higher consolidated gross margins since ChargeSmart usually generates revenue of 3% to 4% of the amount processed. The purchase was funded through internal treasury and is anticipated to be accretive after one-time costs and integration expenses.
ChargeSmart websites have more than 3.1 million visitors per year who process approximately $100 million in bill payments annually.
"ChargeSmart has done a fantastic job establishing itself as a trusted brand and bill pay destination for hundreds of thousands of customers," said Hamed Shahbazi, chairman and chief executive of TIO Networks, in the release. "Their ability to acquire customers through cost-effective online marketing programs and to quickly process them through an intuitive ecommerce check-out experience is a highly desirable competency for TIO."