Payoneer Acquires Skuad, a Global HR Startup, for $61M Cash
New York-based fintech Payoneer has acquired Singapore-based Skuad, a global HR and payroll startup, for $61 million in cash, with potential for an additional $10 million based on performance goals. Payoneer is also granting $10 million in restricted stock units to key personnel. In total, the acquisition could amount to around $81 million.
Skuad founder Sundeep Sahi launched the company in 2019 to simplify international hiring for small-to-medium-sized employers in over 160 countries. Skuad had raised $19 million in venture funding prior to the acquisition.
Payoneer, a provider of cross-border payment services to 2 million businesses in over 190 countries, targets SMBs operating internationally. Payoneer CEO John Caplan noted that both Payoneer and Skuad cater to SMBs in emerging markets, while larger payroll management startups focus on enterprises.
With over 2,150 employees, Payoneer announced record revenue of $240 million and record adjusted EBITDA of $73 million for the second quarter. The company aims to capture a share of the $6 trillion B2B market and plans to integrate Skuad's offerings into its services.
Amid a venture capital slowdown in the fintech market, acquisitions have increased, with 159 transactions announced or completed in 2024. Payoneer, which went public in 2021 via a SPAC merger, has been active in acquisitions, including AI data startup Spott in 2023 and a Chinese payments company.
In a post-pandemic world, remote work is on the rise, leading companies to seek scalable solutions to reduce labor costs. Payoneer's acquisition of Skuad aligns with this shift and the growing demand for global payroll and contract management services.
Analysis:
Payoneer's acquisition of Skuad reflects the fintech market's trend towards consolidation and integration of services to meet the evolving needs of SMBs operating internationally. This move underscores the importance of streamlining HR and payroll processes for distributed teams and adapting to the increasing demand for remote work solutions. As a result, businesses looking to expand globally can benefit from Payoneer's enhanced offerings and expertise in cross-border payments, ultimately impacting their financial operations and growth strategies.