GoLogiq to acquire Vietnam-based payroll fintech firm Symplefy for $30 mln

GoLogiq, Inc., a U.S.-based provider of fintech and consumer data analytics, has signed a definitive agreement to acquire Symplefy, a supplier of innovative payroll and end-to-end human resource management solutions.

The all-stock transaction is valued at up to $30 million, dependent on performance-based earnouts, the American company said on Friday.

Following the deal, Ho Chi Minh City-based Symplefy’s co-founder and CEO Stephen Jones was appointed to the open position of chief financial officer of GoLogiq. He will also continue to serve as CEO of Symplefy as a wholly-owned subsidiary of GoLogiq, the buyer said.

“Focused on businesses in the fast-growing economies of Southeast Asia, Symplefy is revolutionizing the way corporations manage their workforce by simplifying HR processes and streamlining payroll processes through its innovative cloud-based software management tools,” GoLogiq elaborated.

Under the terms of the definitive agreement, Symplefy will become a wholly-owned subsidiary of GoLogiq. The buyer will issue shareholders of Symplefy common shares of GoLogiq valued at $15 million in exchange for 100% of Symplefy.

Symplefy shareholders may earn up to $15 million in additional shares of GoLogiq if certain earnout targets are achieved, GoLogiq said.

Symplefy expects to ramp its customer acquisition to more than 2,000 corporate clients over the next 18 months.

Jones said: “Symplefy’s technology and Southeast Asia focus complements GoLogiq with a solution that inherently acquires a significant amount of customer data, such as spending, banking habits, and income.”

GoLogiq executive chairman Brent Suen said: “This acquisition is the next of several in our pipeline that strengthen the power of our fintech platform and consumer data analytics technology. After our full launch into Vietnam, we plan to expand our footprint to other Southeast Asian markets facing similar challenges.”

The global payroll and HR solutions and services market is projected to grow at an 8.4% compound annual growth rate (CAGR) to reach $50.4 billion by 2030, GoLogiq said in its announcement of the transaction.

According to GoLogiq, HR industry thought-leader People Matters points out countries in Southeast Asia (SEA) represent a major global hub for manufacturing and trade, as well as one of the fastest-growing consumer markets in the world. While being the third-largest labor force, only behind China and India, SEA nations have outpaced the rest of the world in GDP growth per capita since the late 1970s.

In that context, Symplefy has focused the initial launch of its fintech platform on the fast-growing economy of Vietnam.

According to ratings agency S&P Global, Vietnam is expected to experience rapid economic growth over the medium term as a key beneficiary of the shift in global manufacturing supply chains towards competitive SEA manufacturing hubs. In light of the strong growth outlook, domestic and international businesses operating in Vietnam face challenges related to payroll and human resources management regulations.

GoLogiq (OTC: GOLQ in the U.S.) recently announced a sale of its fintech assets to Recruiter.com Group (NASDAQ: RCRT), a recruiting solutions provider. If this sale is consummated prior to the closing date of GoLogiq’s business combination with Symplefy, GoLogiq intends to assign its rights in the share purchase agreement with Symplefy to Recruiter, whereupon Symplefy would become a subsidiary of Recruiter, said GoLogiq.