Walk-in Billing Solution Provider Successfully Acquired by TIO
PRINCETON, NJ, April 25, 2016 – Edison Partners announced today the strategic sale of Softgate Systems to TIO Networks (TNC.V), which creates North America’s leading cloud-based bill payment processor.
Headquartered in Fairfield, NJ, Softgate Systems has operated one of the largest networks of walk-in bill payment and financial services distribution centers in the United States. The combination of Softgate’s extensive bill payment network with TIO’s authorized biller relationships will provide benefits for consumers as well as operating synergies.
As part of this transaction, Joe Allegra, General Partner at Edison Partners, will join the Board of Directors of TIO. "I look forward to working with TIO CEO, Hamed Shahbazi, and the TIO board on growing the combined company," said Allegra. "Softgate CEO, Rick Auletta, and the entire Softgate team did a great job of building the company to this point." Allegra served on the board along with Edison Director Network member, Andy Newcomb, co-founder of Ecount, and current Managing Partner of MissionOG.
“We appreciate the guidance and support from Joe and the entire Edison Team as we grew Softgate,” said Rick Auletta, CEO at Softgate Systems. “Together with the TIO team, we are confident we will continue to deliver a great product for consumers and value for our shareholders.”
Edison Partners has financed and guided more than 200 private companies, including 38 Financial Technology companies. Notable exits include Edgetrade (NASDAQ: NITE), FolioDynamix (NASDAQ: ACTA), GAIN Capital (NYSE: GCAP), Liberty Tax (NASDAQ: TAX) and Princeton Financial. Current investments include: BFS Capital, Billtrust, Clearpool Group, Compliance Science, OptionsCity, Scivantage, Solovis and Trader Tools.
About Softgate Systems
Softgate provides reliable walk-in bill payment, domestic and international prepaid wireless, prepaid long distance, international top-ups and international bill payments through their PayXchange service. Established in 1993, Softgate connects world-class service providers and consumers through one of the largest networks of independent retail-based payment centers in the US.
About TIO Networks
TIO is a multi-channel cloud-based bill payment processor serving the largest telecom, wireless, cable, and utility bill issuers in North America. With more than 66,000 endpoints, TIO symbolizes fast, convenient and secure bill payment services.
About Edison Partners
For 30 years, Edison Partners has been helping CEOs and their executive teams navigate the entrepreneurial journey and build successful companies. Through the unique combination of expansion capital and the Edison Edge platform, consisting of strategic advisory, the Edison Director Network, and executive education, Edison employs a holistic approach to nurturing invention and creating value for growth stage businesses ($5 to $20 million in revenue) in financial technology, healthcare IT, enterprise IT, and marketing software industries. Edison investment objectives also include: buyouts, recapitalizations, spinouts and secondary stock purchases.
Edison’s active portfolio has created aggregate market value exceeding $5 billion. Its long-tenured team, based in Princeton, NJ, McLean, VA, and Cleveland, OH, manages more than $1 billion in assets throughout the eastern United States.