Payoneer acquires Singapore payroll co Skuad

Israeli fintech company Payoneer Global (Nasdaq: PAYO) has announced the acquisition of Singapore-based global workforce management and payroll company Skuad. Payoneer says the acquisition accelerates its strategy to offer a comprehensive and integrated suite of financial services to small and medium-sized businesses operating internationally.

Payoneer will pay $61 million in cash to Skuad, subject to adjustments, plus up to an additional $20 million in future cash and stock payments contingent upon reaching performance and term milestones.

Payoneer has developed a payments platform for suppliers and service providers. The company is traded on the Nasdaq with a market cap of around $2.3 billion after completing a SPAC merger three years ago at a company valuation of $3.3 billion, during the tech boom of 2021. However, after today’s acquisition announcement and financial results, the company’s stock price rose 19.24%.

“We are excited to announce the acquisition of Skuad and welcome to Pioneer talented entrepreneurs who share our vision of supporting small and medium-sized businesses globally,” said John Kaplan, CEO of Pioneer. “We are combining the power and scale of Pioneer with Skuad’s comprehensive global workforce and payroll solutions to create a powerful platform that will enhance our customers’ ability to scale their teams around the world and grow globally.”

Pioneer announced the acquisition along with its second-quarter financial results. Revenue was $239.5 million, up 16% from the prior-year quarter, and net income was $32.4 million, down 29%. The company raised its outlook and now expects revenue in the range of $920 million to $930 million and adjusted EBITDA in the range of $225 million to $235 million.

This article was published in Globes, Israeli Business News – en.globes.co.il – on August 7, 2024.

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