Deel Inc., a San Francisco-based global payroll and compliance firm, has struck a deal to acquire PayGroup Ltd., a publicly traded global payroll company based in Melbourne, Australia. 

Deel’s offer would pay shareholders $1 in Australian currency (69 US cents) per share in an all-cash transaction. The deal implies a total equity value for PayGroup of approximately $119.3 million in Australian currency (US$82.6 million).

The PayGroup board has unanimously recommended its shareholders vote in favor of the deal. If approved, the acquisition is expected to complete in October.

The acquisition will expand Deel’s portfolio in the Asia-Pacific region.

“The value offered is testament to the strength of the PayGroup business we have grown over the last four years since listing on the ASX in 2018,” PayGroup Managing Director Mark Samlal said.  

The acquirer, Deel, was founded in 2019 and has a presence in more than 150 countries. It aims to enable firms to hire remote workers and contractors. It raised a $425 million funding round in October 2021 at a company valuation of $5.5 billion.