Payoneer bought global payroll startup Skuad for $61M in cash, up to $81M with incentives

Payoneer provides cross-border payment services to about 2 million businesses in over 190 countries and territories; Skuad ran global HR and payroll for SMB employers.

Skuad had raised about $19M from Beenext, Anthemis, NMVM, Argor Capital and angels; exit price $61M cash, up to $10M earnout over 18 months, $10M in RSUs for key staff.

Sundeep Sahi launched Skuad in Singapore in 2019 to simplify international hiring. Payoneer, which went public in 2021 via a SPAC merger backed by Betsy Cohen, serves SMBs moving money across borders.

Skuad grew to about 200 employees serving employers across 160+ countries. Payoneer CEO John Caplan framed the two as complementary: both target internationally active SMBs — Philippine BPOs, UAE marketing agencies, Korean beauty exporters — where larger payroll players like Deel and Rippling chase enterprises. Payoneer had been buying: optile in 2019, an AI data startup Spott and a China-licensed payments company announced in August 2023. Capstone Partners counted 159 fintech deals announced or completed by mid-April 2024.

Payoneer acquired Skuad for $61 million in cash, announced August 7, 2024, with up to $10M more on 18-month performance goals and $10M in RSUs tied to key staff staying; all ~200 Skuad employees joined, and Payoneer plans to integrate Skuad's payroll and contract management into its offering.

The deal filled a product gap: Payoneer moved money for 2M SMBs but didn't do payroll or contract management until Skuad.

Both companies target internationally active SMBs in emerging markets, where Payoneer said Deel and Rippling focus on enterprises instead.

Skuad got a fast five-year exit: about $19M raised turned into $61M cash plus up to $20M in earnout and RSUs.

It fit a wave: 159 fintech deals were announced or completed by mid-April 2024 as the VC slowdown pushed consolidation, per Capstone Partners.

When venture money dries up, listed fintechs with cash become the buyers: Payoneer used its payments base to buy the payroll layer its cross-border SMB customers needed.

As of August 7, 2024, all of Skuad's roughly 200 employees were joining Payoneer, which planned to fold Skuad's payroll and contract management into its cross-border payments offering for SMBs. The deal came with $10M in RSUs tied to key personnel staying and up to $10M contingent on 18-month performance goals. Payoneer the same day reported record revenue of $240 million, up 16% year over year.