Papaya Global officially denied reports of an acquisition deal being considered with HR startup Deel. Both global venture-backed startups sell services to enable companies to hire, pay and manage workers all over the world.

Earlier this week, it was reported that the board of Deel allegedly put in an offer to purchase a 10% stake in Papaya Global. The reports cited a “a source familiar with the matter” and a letter by Deel to Papaya Global. Business Insider had reported that Deel aimed to acquire the stake of one of Papaya’s investors, US-based venture firm Group 11, at a $520 million valuation. Deel chairman and CFO Philippe Bouaziz reportedly also floated the idea of acquiring the entire business.

However, Papaya Global told SIA that it has declined Deel’s proposal.

“The headline of this article is greatly misleading, at best,” Papaya Global stated.

Papaya Global referenced a letter that Deel had emailed to them.

“We wonder about the timing of this, as this letter was published on Thursday, 31 August, and by 5 September, Deel was reported to have legal entanglements, which they acknowledged in the media. We suspect the letter’s purpose was to divert attention from Deel’s current legal situation,” Papaya Global stated. “Deel’s letter was emailed with no confirmation of its receipt or delivery to Papaya’s board, as customary in these matters. To be perfectly clear: Papaya shares are not for sale. We will continue our course to an IPO, keeping our core values of compliance and innovative technology.”

In a letter responding to Deel, which was addressed to Bouaziz, Papaya Global CEO and co-founder Eynat Guez wrote, “While we appreciate Deel’s interest in acquiring Group 11’s position, we respectfully decline your proposal. We’re astonished that your offer somehow surfaced publicly. It seems your goal was, in fact, to make headlines and to benefit from tarnishing our company’s great reputation.”

Guez continued, “Regarding the suggestion to ‘work together,’ we will pass, in part because of the allegations of compliance issues Deel is currently facing both federally and on state level in California and Florida, as well as reports on AML [anti-money laundering] issues with the CFTC [Commodity Futures Trading Commission]. We leave it to you to handle these matters internally. … We proceed on our set course as a market leader, which is underpinned by our unique and cutting-edge technology. We will continue our journey to an IPO.”

SIA reached out once again to Deel, and the company said it had no comment.