Nasdaq-listed financial technology company Payoneer has acquired 100% of Singapore-based workforce and payroll management company Skuad, according to an announcement.
Payoneer, which provides cross-border payment services to small and medium-sized companies, plans to integrate Skuad’s payroll and contract management offerings into its suite of services.
The deal includes a cash consideration of $61 million and an earn-out of up to $9.7 million, subject to meeting certain performance criteria within the first 18 months after the acquisition. Payoneer has also committed to granting $10.4 million in restricted stock units, which will vest contingent on the continued employment of key personnel.
Founded in 2019 by Sundeep Sahi, Naman Singhal and Dave Fall, Skuad claims to make hiring remote teams globally a seamless experience. It says its unified platform streamlines the processes of hiring, onboarding, payroll, and talent management, thereby eliminating the need for its clients to establish local entities.
“Our customers have been asking for more robust payroll solutions, and the acquisition of Skuad allows us to meet that demand,” said Payoneer APAC senior VP Nagesh Deveta in a statement. “We are seeing SMEs increasingly seeking scalable solutions and the best talent at the right cost without border limitations. This acquisition positions us to better serve our customers’ needs and drive growth.”
According to a recent financial statement, Skuad reported a net loss of $5.4 million for the financial year ended December 31, 2023, an increase of 58% from the previous year. Its 2023 revenue stood at $9.2 million.
The acquisition provides an early exit to BEENEXT, Argor Capital (formerly known as Go-Ventures), NMVM, Anthemis and other investors in the five-year-old startup. It also comes at a time when fund managers are contending with gloomy exit conditions.
“This was a before-sunrise investment. Seeing it through alongside an amazing team to a successful exit to a Nasdaq-listed company is a true testament to having created value,” said BEENEXT managing partner Dirk van Quaquebeke.
Skuad had raised $15 million from investors prior to the acquisition. According to DealStreetAsia – DATA VANTAGE, BEENEXT was the largest shareholder in Skuad, followed by Argor Capital, which led a $15 million Series A round in the company in 2022.
