Bill payment processing company TIO Networks has acquired Softgate Systems Inc., a provider of retail bill payment solutions. With this merger, TIO plans to position itself as the largest provider of self-service bill payment solutions, according to a press release.

Within the last year, the two companies processed a combined 80 million consumer transactions worth more than $9 billion. TIO will acquire $30 million in net operating losses from Softgate, which it will use to reduce its taxable income, the release said

"The acquisition of Softgate provides a unique opportunity for TIO to scale its business substantially and represents an important corporate milestone as we continue to grow and evolve to meet the needs of our customers,” said Hamed Shahbazi, CEO of TIO Networks. "TIO has enjoyed an eight-year relationship with Softgate and, with our cultural and commercial alignment, an acquisition felt like a natural progression for our businesses. We expect to be able to expand and extend services toward our customer base across North America, with a strong focus on servicing the underbanked and unbanked population."

"Softgate is excited to join forces with TIO and to create an emerging competitor in the multi-channel bill payment marketplace," said Softgate CEO Rick Auletta. "This acquisition will be beneficial for our current and future customers, providing an increased level of service between the two companies. Both TIO and Softgate possess complementary products and distribution channels in the bill payment industry, and together we can provide a level of service second to none."