.... Their Fin Year ends 31 March, they obviously want to have this acquisition fully integrated and providing operation cashflows from as close to the start of FY 22 as possible. If they waited its a missed opportunity and who was to say the price would go higher? That's called a gamble. They clearly have been negotiating this for a while now, considering what I have read on LinkedIn around 2 - 3 months.

This acquisition will dilute the companies shares outstanding by around 15 % However the other 10% will be in escrow for 24 months after being issued. These are allocated to the owners of IWS, giving them ownership rights of Paygroup. If Paygroup performs well over the next 2 years why would they sell their shares? They have already been paid 8m in the 2 years prior.

IWS is similar to astute, its comes with full integration and management.

Once this acquisition settles, it will mean that PYG has 1000 new customers they can now cross sell their HCM systems with. This gives them a huge edge to increase their ARR well above 35m - 40m in the next 12 months. The IWS platform is currently profitable, this being integrated into next years NPAT and growth PYG may not need to raise money or issue shares to acquire other companies and integrate them.

This franchise model acquisition in Asia Pacific is huge, it means that all of IWS customers can now build their businesses easily overseas, and it means they can target head offices like Jollibee and try to secure larger cross country contracts.

All in all I'm very happy with this, there is dilution but its warranted and its not making their company lose money. The share price wont move upward for at least 2 months now due to the capital raising. There may even be buying potential in the mid - high 50's based off on market movements.

I will be buying in the 50's and holding.

Best method on this stock is to hold for as long as you hold your house. Give it time to really develop into PayGroup, Mark and the team are slowly but steadily building a very large multinational company in Asia Pacific. The competition is in North America and Europe. These guys are uncontested with a VERY large market to take over.

Good things ahead.