US-based global payments provider Payoneer has stepped up its activity in East Asia via an acquisition of Skuad, a workforce and payroll management company based in Singapore.
Announced in the company’s Q2 2024 financial results, the acquisition forms part of Payoneer’s strategy to deliver what it calls a ‘comprehensive and integrated financial stack’ for international SMEs.
The transaction was conducted for $61m in cash, subject to adjustments and funded with cash on hand. There is scope for an additional $20m in future payments in cash and equity, contingent upon certain performance milestones being achieved.
SMBs have become a target group for Payoneer. The firm states that it is finding that more cross-border SMBs with global operations are using its financial stack, and that by acquiring Skuad it is accelerating its evolution and B2B momentum.
“Payoneer is accelerating growth across our entire SMB customer business,” said Bea Ordonez, Payoneer’s Chief Financial Officer.
“We delivered a second consecutive quarter of 21% growth in revenue excluding interest income and $7.5m of certain non-volume fees earned in the prior year period.
The acquisition further builds up Payoneer’s presence in Singapore, with the company having secured a major boost in the country last year with a Major Payment Institution licence issued by the Monetary Authority of Singapore (MAS).
Singapore is one of the most prominent payments markets in East Asia and globally, home to numerous banks, wealth management firms, insurance corporations, commodities traders and treasury-related companies, among other financial services stakeholders.
As stated above, the acquisition of Skuad was announced during the firm’s Q2 earnings results. On a wider scale, the company reported 15% year-over-year growth between Q2 2023 and Q2 2024 from $151.4m to $173.7m.
“We are raising our 2024 guidance to reflect our significant outperformance in the second quarter and our momentum heading into the second half of 2024,” Ordonez remarked.
“We continue to innovate our product offerings, are accelerating the evolution of our financial stack with our acquisition of Skuad and continue to strengthen our position as the dedicated partner of choice for SMBs with global, cross-border operations.”
