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PayGroup: Reveals $2.5M Payroll HQ buyout

November 4, 2020

PayGroup (PYG) is trading higher today after announcing a $2.5 million, full-scrip buyout of payroll specialist Payroll HQ
PYG will cough up the $2.5 million through the issue of just over 4.1 million shares at 61.5 cents a pop
This price is based on PYG’s volume-weight average price for the 90 days to November 2
On top of this, the company may need to pay another $1.3 million in shares at the same price based on Payroll’s 2021 financial year revenue
PayGroup also says the buyout will give it around $2.25 million extra in revenue and provide major cross-selling opportunities
Shares in PYG are up just under 2 per cent today and worth 56 cents each