NZX-listed employment solutions company PaySauce has bought the business and assets of Palmerston North-based SmoothPay.
The acquisition means more than 1,500 SmoothPay subscribers will join PaySauce, lifting the company's total software-as-a-service (SaaS) customer base to over 5,000 subscribers.
PaySauce also adds market presence in Australia and several Pacific Island nations as a result.
SmoothPay founder Matthew Gardner will join PaySauce as a senior payroll developer, bringing institutional knowledge and expertise on programming for compliance with New Zealand legislation, as well as for the other jurisdictions SmoothPay operates in.
“This is noteworthy for several reasons - overnight, we’ve expanded into multiple overseas markets, grown our customer base of subscribers by 45 per cent and gained the expertise of one of the nation’s foremost payroll software professionals," said PaySauce CEO Asantha Wijeyeratne.
The two businesses were well paired to complement each other’s strengths and eliminate any product gaps, Wijeyeratne added.
"There’s a lot of work ahead to integrate SmoothPay without any disruptions to our customers, but we’re incredibly excited to get started,” he said.
PaySauce's first acquisition was fully payable through the issue of 1,416,164 ordinary shares, which were trading at 26 cents a share today.
That represented around one-and-a-half times times SmoothPay’s annual revenue for the 2021 financial year.
In 2019, PaySauce launched a new platform to support services beyond payroll, such as digital employment agreements, developed in partnership with Federated Farmers, timesheets and costing.