Exclusive: Payoneer Snaps Up Skuad for $61M in Cash, with Potential for Additional $10M
New York-based fintech company Payoneer has made a significant move by acquiring Singapore-based global HR and payroll startup Skuad for $61 million in cash. The acquisition is a testament to Payoneer’s continued efforts to expand its offerings and reach new markets.
A Strategic Move for Payoneer
Payoneer, which provides cross-border payment services to over 2 million businesses in more than 190 countries, has been actively pursuing opportunities to enhance its global presence. By acquiring Skuad, the company is strengthening its position in the market by offering a comprehensive solution for small-to-medium-sized employers (SMBs) operating internationally.
Meeting the Needs of Emerging Markets
Skuad’s focus on simplifying international hiring and addressing challenges faced by SMBs operating globally aligns with Payoneer’s mission to support businesses that operate across borders. Skuad’s technology helps companies navigate issues such as regulatory variations, international payrolls, and remote onboarding.
Skuad’s Growth Potential
Prior to the acquisition, Skuad had raised approximately $19 million in venture funding from investors like Beenext, Anthemis, NMVM, Argor Capital, and several angel investors. The company boasts a "high growth recurring revenue model" and has established itself as a key player in the global HR and payroll space.
Payoneer’s Record Revenue
In a separate announcement, Payoneer revealed record revenue of $240 million, representing a 16% year-over-year increase. This achievement underscores the company’s continued momentum and commitment to growth.
A Shift towards Scalable Solutions
Payoneer CEO John Caplan highlights the growing demand for scalable solutions in the face of remote work becoming an essential aspect of modern business. With the acquisition of Skuad, Payoneer is well-positioned to capture share in the $6 trillion B2B market, which is increasingly driven by global trade and economic activity.
The Benefits of Integration
Payoneer plans to integrate Skuad’s payroll and contract management offering into its own platform, further enhancing its capabilities and offerings for customers. This strategic move will enable Payoneer to provide a more comprehensive solution for businesses operating globally.
A Testament to Skuad’s Potential
The acquisition is a testament to Skuad’s potential as a valuable addition to the Payoneer ecosystem. With this deal, Payoneer reinforces its commitment to innovation and growth in the fintech space.
The Deal Structure
In addition to the $61 million cash payment, there is a potential for an additional $10 million payment based on certain performance metrics. This structure demonstrates Payoneer’s confidence in Skuad’s growth prospects and its commitment to fostering long-term success.
Conclusion
Payoneer’s acquisition of Skuad marks a significant milestone in the fintech industry, underscoring the importance of strategic partnerships and innovation in driving growth. As both companies continue to expand their offerings and reach new markets, they are poised to play a leading role in shaping the future of global business.
