Mediaboss Marketing

Image source: Getty Images

ThePayGroup Ltd(ASX: PYG) share price hit a record high of 93.5 cents during early morning trade today. This comes following the companys latest takeover news.

Since then, shares in the human capital management (HCM) solution company have slightly retraced to 92.5 cents, up 153.43%.

Lets take a look below at what the company updated the market on.

In itsrelease, PayGroup announced it has entered into a Scheme Implementation Agreement with Deel, Inc. and Deel Australia.

Established in 2019, Deel helps businesses hire independent contractors and full-time employees by using a tech-enabled self-serve process. The company has a presence in over 150 countries and services more than 8,000 customers.

By way of a scheme of arrangement, Deel is seeking to acquire 100% of the ordinary shares in PayGroup.

Under the terms of the deal, PayGroup shareholders will receive cash consideration of $1 for each PayGroup share held. This represents a 174% premium when compared to yesterdays closing price of 36.5 cents.

The consideration implies a total value of around $119.3 million, subject to certain customary conditions.

The PayGroup Board noted that it unanimously recommends that all shareholders vote in favour of the Scheme.

If approved along with the court order, the deal is expected to be complete in October 2022.

With investors digesting the companys latest news today, the PayGroup share price has soared into uncharted territory.

PayGroup managing director, Mark Samlal commented:

We are delighted by this proposed transaction with Deel.

The value offered is testament to the strength of the PayGroup business we have grown over the last 4 years since listing on the ASX in 2018.

We have built a high-quality business with strong, recurring revenues from blue-chip customers across Asia-Pacific and beyond.

We are immensely proud of the achievements of the PayGroup team and we look forward to continuing to build this together as part of Deel, one of the worlds fastest growing and leading global compliance and payroll solution companies.

Adding to todays euphoric gains, the PayGroup share price has accelerated by 172% since the start of 2022.

When looking at the past 12 months, the companys shares are up 101%.

Based on todays price, PayGroup commands amarket capitalisationof around $43.19 million.

See original here:
Guess which ASX software share just rocketed 150% on takeover news - The Motley Fool Australia