Australian software provider PayGroup Ltd. acquired 100% of the assets of its Malaysia-based industry peer TalentOz Sdn. Bhd. from the latter's majority owner SMRT Holdings Bhd. and a private shareholder.
The transaction price is S$1.15 million, composed of S$165,000 in cash and S$985,000 in shares to be issued to TalentOz vendors, subject to a 12-month escrow period. There will be a further payout of S$500,000 in shares in 12 months, subject to TalentOz meeting certain performance criteria.
Under the deal, PayGroup will acquire TalentOz's 11 software modules covering areas such as payroll, analytics, talent management, time and attendance, and performance management. This is in line with PayGroup's goal of providing a full range of human capital management software across its current footprint of 33 countries.
TalentOz's proprietary payroll solution will also be acquired by PayGroup, allowing the latter to save on costs and help it transition away from its current third-party technology provider.
Malaysian investment company SMRT Holdings will become shareholders in PayGroup following the transaction.
As of July 13, US$1 was equivalent to S$1.39.