Payoneer, a US-based paytech company, has paid $61 million in cash to purchase Skuad, a Singapore-based start-up that manages payroll and workforce globally.
The agreement, which was completed on August 5, according to Payoneer, also includes “up to an additional $20 million of future payments in cash and equity,” subject to Skuad meeting “certain performance and tenure milestones.”
The 2019 launch of the Skuad platform aims to streamline SMB hiring, onboarding, payroll, and talent management procedures. It supports 100 currencies and is currently active in 160 countries globally.
Payoneer presently provides online money transfer and cross-border payment services for businesses and entrepreneurs in 190 countries. It now plans to incorporate Skuad’s payroll and contract management tools into its own solutions.
According to the business, 25% of its B2B clients are now asking for “enhanced workforce management,” which includes capabilities for contractor management, payroll, and employer of record. This has led to “significant cross-sell potential” with the company’s most recent acquisition.
The agreement will “accelerate our evolution and B2B momentum,” according to Payoneer CEO John Caplan, who also notes that the team and technology of Skuad will contribute to the creation of “a powerful platform that will enhance our customers’ ability to expand their teams worldwide and grow globally.”
The paytech reported encouraging sales growth of 16% to $239.5 million in its most recent financial results, which cover the period ending June 30.
