Payoneer, a New York-based fintech company, has recently acquired Skuad, a global HR and payroll startup based in Singapore, for a sum of $61 million in cash, a TechCrunch exclusive report confirms.
In addition to the cash payment, Payoneer has outlined further potential payments totaling up to $10 million, based on Skuad meeting certain performance milestones within the first 18 months following the acquisition. Payoneer has also committed to awarding $10 million in restricted stock units, subject to vesting based on the continued employment of key personnel. This brings the total potential payout to approximately $81 million.
Skuad, founded by Sundeep Sahi in 2019, aims to simplify international hiring. The company primarily assists small-to-medium-sized employers in over 160 countries navigate challenges related to building distributed teams, such as varying regulations, international payrolls, and remote onboarding.
Having previously secured about $19 million in venture funding from investors like Beenext, Anthemis, NMVM, and Argor Capital, Skuad’s acquisition marks a significant milestone for the startup.
Payoneer, known for providing cross-border payment services to over 2 million businesses across more than 190 countries, saw potential synergy with Skuad’s focus on international operations of small and medium-sized enterprises (SMBs).
While larger payroll management startups cater more towards enterprises, both Payoneer and Skuad primarily target SMBs expanding into emerging markets.
With over 2,150 employees, Payoneer plans to integrate Skuad’s offerings into its portfolio, enhancing its payroll and contract management services.
Amid a VC slowdown in the fintech market, acquisitions like the one between Payoneer and Skuad have become increasingly common, with 159 transactions reported by mid-April 2024, similar to the previous year’s pace.
As part of its growth strategy, Payoneer has made several acquisitions in recent years, including AI data startup Spott, a payments company in China, and a German payments startup optile. These moves underscore Payoneer’s commitment to expanding its capabilities and global reach.
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