GoLogiq, Inc. (OTC:GOLQ), a U.S.-based global provider of fintech
and consumer data analytics, has signed a definitive agreement to
acquire Symplefy, a provider of innovative payroll and end-to-end
human resource (HR) management solutions based in Ho Chi Minh City,
Vietnam. The all-stock transaction is valued at up to $30 million,
dependent on performance-based earnouts.
Following the close of the transaction, Symplefy’s co-founder
and CEO, Stephen R. Jones, was appointed to the open position of
CFO of GoLogiq. He will also continue to serve as CEO of Symplefy
as a wholly owned subsidiary of GoLogiq.
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, enhancing workforce efficiency and simplifying complex
regulatory compliance.
Symplefy generates a significant amount of data, which when
paired with GoLogiq’s existing Radix™ Big Data analytics platform,
can provide key insights to enhance the client experience as well
as provide cross selling opportunities with GoLogiq’s other fintech
platforms.
The OpportunityThe global payroll and HR
solutions and services market is projected to grow at a 8.4% CAGR
to reach $50.4 billion by 2030. HR industry thought-leader, People
Matters, points out Southeast Asia (SEA) countries 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.
To address the substantial market opportunity SEA represents,
Symplefy has focused the initial launch of its fintech platform on
the fast-growing economy of Vietnam. According to 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 numerous unique
challenges related to payroll and human resources management
regulations. Vietnamese labor laws that regulate minimum wage,
overtime, social insurance contributions, and personal income tax
can be intricate and subject to frequent changes.
These factors make it challenging for businesses of all sizes to
stay compliant. SMBs especially face many hurdles with adopting
modern payroll systems and automation, and traditional manual
payroll processes are prone to errors and inefficiencies.
To address these regulatory challenges while staying
competitive, businesses in Vietnam need to invest in robust payroll
software, seek professional advice on compliance matters, stay
updated on changing regulations, and implement effective HR
practices to attract and retain skilled talent.
The SolutionSymplefy solves these problems with
a highly affordable and easy to implement cloud-based system for
payroll and HR management. Its HR management system automates
time-tracking and employee leave management while its payroll
solution generates accurate payrolls and comprehensive reports.
The platform is currently in the early stages of roll out,
initially deployed with several manufacturing businesses that have
50 to 2,500 employees. Under a new marketing campaign, Symplefy
intends to launch the solution across multiple industries and
geographies. Through its initiatives, Symplefy expects to ramp its
customer acquisition to more than 2,000 corporate clients over the
next 18 months.
“We believe that every business, regardless of its scale, wants
and deserves access to top-tier software that optimizes their HR
functions and simplifies their payroll management,” noted Jones.
“Our user-friendly interface, robust features, and seamless
integration capabilities ensure that our software is both powerful
and accessible.”
“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,” added Jones. “We plan to apply GoLogiq’s existing Radix™
Big Data analytics platform to implement data analysis that can
help enhance the customer experience as well as provide cross
selling opportunities with other GoLogiq fintech platforms.”
In addition to payroll and HR functions, the Symplefy platform
is designed to support future opportunities for cross border
transfer transactions, micro-lending, micro personal insurance, and
more efficient payroll. This includes cross pollination
opportunities with GoLogiq’s other fintech solutions, including
credit cards, banking, and lending for underserved businesses.
According to executive chairman of GoLogiq, Brent Suen: “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.”
To learn more about Symplefy’s end-to-end HR management system
and payroll solution, contact the company here.
Transaction DetailsUnder the terms of the
definitive agreement, Symplefy will become a wholly owned
subsidiary of GoLogiq. GoLogiq is to 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’s recently announced a sale of its fintech assets to
Recruiter.com Group (NASDAQ:RCRT) (NASDAQ:RCRTW) (“Recruiter”), a
recruiting solutions provider. If such 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.
Additional details about the Symplefy transaction will be made
available in a Form 8-K on www.sec.gov as well in the investor
section of GoLogiq’s website.
Stephen R. Jones BioStephen R. Jones is an
international finance and operations executive with more the 15
years of experience leading global organizations in emerging
markets in Asia and international, multi-cultural environments. He
brings to the company broad and deep experience in starting,
growing and expanding e-commerce and professional service business
and financial services enterprises from pre-revenue to more than $8
billion in sales.
Jones previously developed highly successful, go-to-market
financial strategies for several companies and managed three
turnarounds. He devised the strategic and financial plans for
raising nearly $57 million for two start-ups, and guided two
companies through an initial public offering, raising more than $90
million. He also led the sale of three companies, realizing
shareholder value of more than $400 million.
“We welcome Steve’s extraordinary record of achievement and deep
software and financial experience as we further enhance our fintech
and consumer data analytics platforms,” commented Suen. “We
anticipate Steve playing a key role as we advance the commercial
roll out of our technologies on a global scale."
He previously served as CFO of Vemanti Group, a financial
technology company located in Irvine, California. Earlier he served
as CFO and COO of Dreamplex, a provider of hybrid working solutions
for organizations located in Ho Chi Minh City, Vietnam, and
currently serves on the company’s board of directors.
Prior to Dreamplex, he served as COO of HMB Inc., a
service-based company that offers IT and technology solutions for
medium to large companies in various industries. He also previously
served as COO and CFO of Navigos Group in Ho Chi Minh City,
Vietnam.
Jones holds a B.A. in political science and history from
Vanderbilt University, and an MBA in Finance and Accounting from
University of Cincinnati Carl H. Lindner College of Business.
About GoLogiqGoLogiq Inc. is a U.S.-based
global provider of fintech and mobile solutions for digital
transformation and consumer data analytics. Its software platforms
are comprised of CreateApp, a mobile app development and publishing
platform for small-to-medium sized businesses; AtozGo™, a
‘hyper-local’ app-based delivery platform; AtozPay™, an eWallet for
mobile top-up, e-commerce purchases, bill payment and microfinance;
and Radix™, a Big Data analytics platform.
To learn more, go to gologiq.com or follow the company on
twitter: $GOLQ and @gologiq.
Important Cautions Reading Forward-Looking
Statements This press release contains certain
forward-looking statements and information, as defined within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934 and is subject to the
Safe Harbor created by those sections. This press release also
contains forward‐looking statements and forward‐looking information
within the meaning of United States securities legislation that
relate to GoLogiq’s current expectations and views of future
events. Any statements that express, or involve discussions as to,
expectations, beliefs, plans, objectives, assumptions or future
events or performance (often, but not always, through the use of
words or phrases such as “will likely result”, “are expected to”,
“expects”, “will continue”, “is anticipated”, “anticipates”,
“believes”, “estimated”, “intends”, “plans”, “forecast”,
“projection”, “strategy”, “objective” and “outlook”) are not
historical facts and may be forward‐looking statements and may
involve estimates, assumptions and uncertainties which could cause
actual results or outcomes to differ materially from those
expressed in such forward‐looking statements. No assurance can be
given that these expectations will prove to be correct and such
forward‐looking statements included in this press release should
not be unduly relied upon.
These statements speak only as of the date of this press
release. Forward‐looking statements are based on a number of
assumptions and are subject to a number of risks and uncertainties,
many of which are beyond GoLogiq’s control, which could cause
actual results and events to differ materially from those that are
disclosed in or implied by such forward-looking statements. Factors
that may cause actual future events to differ materially from the
expected results, include, but are not limited to: (i) the risk
that the merger between Recruiter.com and GoLogiq SPV (or similarly
formed subsidiary to effectuate the transaction) (the “Merger”) may
not be completed in a timely manner or at all, (ii) the failure to
satisfy the conditions to the consummation of the transaction,
including the adoption of the Agreement by the stockholders of
Recruiter.com and GoLogiq, (iii) the occurrence of any event,
change or other circumstance that could give rise to the
termination of the Agreement, (iv) the receipt of an unsolicited
offer from another party for an alternative transaction that could
interfere with the Merger, (v) the effect of the announcement or
pendency of the transaction on GoLogiq’s business relationships,
performance, and business generally, (vi) the inability to
recognize the anticipated benefits of the Merger, which may be
affected by, among other things, competition and the ability of the
post-Merger company to grow and manage growth profitability and
retain its key employees, (vii) costs related to the Merger, (viii)
the outcome of any legal proceedings that may be instituted against
Recruiter.com and GoLogiq following the announcement of the
proposed merger, (ix) the ability to maintain the listing of
Recruiter.com’s securities on Nasdaq, (x) the ability to implement
business plans, forecasts, and other expectations after the
completion of the Merger, and identify and realize additional
opportunities, (xi) the risk of downturns and the possibility of
rapid change in the highly competitive industry in which GoLogiq
operates, (xii) the risk that GoLogiq may not sustain
profitability, (xiii) the risk that GoLogiq may need to raise
additional capital to execute its business plan, which many not be
available on acceptable terms or at all, (xiii) the risk that
third-party suppliers and manufacturers are not able to fully and
timely meet their obligations, (xiv) the risk of product liability
or regulatory lawsuits or proceedings relating to the products and
services of GoLogiq, (xv) the risk that GoLogiq is unable to secure
or protect its intellectual property, and (xvi) the risk that the
securities of the post-Merger company will not be approved for
listing on Nasdaq or if approved, maintain the listing. The
foregoing list of factors is not exhaustive. In particular and
without limitation, this press release also contains
forward‐looking statements regarding the appointment of Stephen
Jones as CFO, our products and services, the use and/or ongoing
demand for our products and services, expectations regarding our
revenue and the revenue generation potential of our products and
services, our partnerships and strategic alliances, the impact of
global pandemics (including COVID-19) on the demand for our
products and services, industry trends, overall market growth
rates, our growth strategies, the continued growth of the
addressable markets for our products and solutions, our business
plans and strategies, our ability to apply to and meet the listing
standards and approvals for Nasdaq, NYSE, or other senior exchange,
our global expansion efforts, our ability to successfully locate
and consummate any contemplated strategic transactions or other
acquisitions, our ability to successfully complete a merger or
acquisition of Symplefy, Inc., the structure of any such
transaction, timing of such transaction, and the valuation of the
businesses after completion of any such transaction, if any, and
other risks described in the Company’s prior press releases and in
its filings with the Securities and Exchange Commission (SEC)
including its Annual Report on Form 10-K and any subsequent public
filings.
GoLogiq undertakes no obligation to update or revise any
forward‐looking statements, whether as a result of new information,
future events or otherwise, except as may be required by law. New
factors emerge from time to time, and it is not possible for
GoLogiq to predict all of them, or assess the impact of each such
factor or the extent to which any factor, or combination of
factors, may cause results to differ materially from those
contained in any forward‐looking statement. Any forward‐looking
statements contained in this press release are expressly qualified
in their entirety by this cautionary statement.
GoLogiq Company Contact:Brent Suen,
ChairmanGoLogiq, Inc.Email Contact
GoLogiq Investor Relations:Ron BothCMA Investor
RelationsTel (949) 432-7566Email contact
GoLogiq Media & ESG Contact:Tim RandallCMA
Media RelationsTel (949) 432-7572Email contact
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