HRnetGroup, on Oct 3, announced that it will be acquiring a 49% stake via a sale and purchase agreement (SPA) in fintech startup Octomate from an independent seller.
The total consideration for the acquisition is $676,530.61. This will be satisfied by way of a cash payment of $650,000 to the independent seller.
The acquisition is expected to be completed on Oct 10.
In addition to the SPA, HRnetGroup will acquire an additional 2% stake in Octomate from its CEO and co-founder Zoey Tong, bringing HRnetGroup’s stake in the startup to 51%. The consideration for Tong’s stake will be announced when the company enters into an official SPA with her.
According to the company, the acquisition represents a homecoming for Tong, who worked as an intern at an HRnetGroup company eight years ago. Tong will now return as the 37th business co-owner of the company.
Octomate is a powerful cloud-based workforce management software for enterprises. Founded in 2019, the startup is built on blockchain for “maximum security and scalability”. Among its suite of offerings, its breakout star is said to be its ability to process instant payments such as salaries, reimbursement of claims and, or even rewards.
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Octomate will remain an independent brand of HRnetGroup.
“We believe that workers should not have to pay fees in order to access their hard-earned wages, and are delighted that with this acquisition, earned wage access will be a new benefit available to our contractors at absolutely no cost to them,” says Adeline Sim, executive director & chief corporate officer at HRnetGroup.
As at 1.52pm, shares in HRnetGroup are trading 1 cent lower or 1.35% down at 73 cents.