- ASX-listed PayGroup (PYG) receives a $119 million takeover offer from US-based tech unicorn Deel
- Under a scheme implementation agreement signed by the companies, Deel’s Australian arm will purchase PayGroup through an all-cash deal
- Deel has offered to buy PayGroup for $1 each per share — a 174 per cent premium to PYG’s last closing price of 36.5 cents per share
- The PayGroup Board has unanimously recommended its shareholders to vote in favour of the deal
- Shares in PayGroup have skyrocketed 151 per cent to trade at 92 cents each at 11:53 am AEST
Payroll and human capital management specialist PayGroup (PYG) has received a $119 million takeover offer from US-based tech unicorn Deel
Under a scheme implementation agreement signed by the businesses, Deel’s Australian arm will purchase PayGroup through an all-cash deal, with PYG shareholders to receive $1 for each share owned.
The cash offer is a 174 per cent premium to PayGroup’s last closing price of 36.5 cents per share, valuing the company at around $119.3 million.
The PayGroup board has unanimously recommended its shareholders vote in favour of the deal and said each director intended to use their voting power to help approve the buyout.
If approved, the deal is expected to be completed in October.
“The PayGroup board is unanimous in its view that this transaction is in the best interests of PayGroup shareholders,” PYG Chairman Ian Basser said.
“We believe this transaction is a very good outcome for PayGroup shareholders, and for PayGroup’s stakeholders more broadly, including our employees, customers and
suppliers.”
PYG Managing Director Mark Samlal said the value of the Deel offer was a testament to the strength of the PayGroup business.
“We have built a high-quality business with strong, recurring revenues from blue-chip customers across Asia-Pacific and beyond,” Mr Samlal said.
“We are immensely proud of the achievements of the PayGroup team and we look forward to continuing to build this together as part of Deel, one of the world’s fastest-growing and leading global compliance and payroll solution companies.”
Deel helps businesses hire workers using its tech-enabled self-serve process. Deel’s customers can hire independent contractors and full-time employees in over 150 countries in minutes.
Shares in PayGroup skyrocketed 151 per cent to trade at 92 cents each at 11:53 am AEST.