Scots fintech Activpayroll ramps up Asia Pacific presence with 'strategic' acquisition

Aberdeen-headquartered fintech firm Activpayroll is accelerating its push into the Asia Pacific region after acquiring a Malaysia-based peer.

The Scots firm, which also has an office in Edinburgh, said its plans had taken a “significant step forward” with the takeover of payroll outsourcing and employee mobility specialist Propay Partners. Bosses at Activpayroll said the business had delivered significant year-on-year growth, increasing revenues over the last year by 27 per cent, with the Asia Pacific business proving to be a significant part of that success. The acquisition of Propay will enable this growth to accelerate.

Chief executive Jason Allen said: “At Activpayroll, we are targeting long-term sustainable growth, building an ambitious approach to acquiring new business while continuing to provide excellent service to our existing customers. Acquiring Propay and the associated growth in the Asia Pacific region is key to us achieving this objective. Propay and Activpayroll have a long-standing partnership spanning over ten years and have fostered a strong collaborative working relationship which places people at the heart of our success.

“When we decided to make the strategic move and strengthen our presence in Asia Pacific, we knew that Propay was the perfect fit. The coming together of our two companies will ensure our continued high service delivery to our growing customer base, and I’m confident that together we will meet our strategic objective of being best-in-class in the Asia Pacific market.”

Financial terms surrounding the acquisition have not been disclosed.

Manish Mehta, co-founder and business director of Propay Partners, said: “We’ve spent the past 21 years building and growing our business and now feels like the right time to integrate with Activpayroll. We are confident that they will help support the team on the next stage of its journey. The values and commitment that Activpayroll has to its people and customers will help ensure a seamless transition for our team members, clients and partners. The Propay team is excited to be joining Activpayroll and helping to drive future growth and success in the region.”

Mehta will bring his “considerable experience” to Activpayroll as he joins the team as the new regional director for Asia Pacific. Propay is said to have built a “strong reputation for high customer service” during its 21-year history.

Allen said the business had “big plans for growth in Asia Pacific”, using the Propay operation as a springboard for that expansion. Malaysia is seen as being “perfectly placed geographically” to service the largest customers in the region.

Chief executive Jason Allen: 'At Activpayroll, we are targeting long-term sustainable growth.' Picture: Iain McLean

Allen added: “The Propay team’s brilliant service delivery to both colleagues and customers are perfectly aligned with Activpayroll’s own values. We will build on Propay’s two decades of knowledge in the market, and together, we will meet our ambitious growth objectives.”

Activpayroll has grown to operate globally, providing services including taxation, payroll, employee mobility and global HR. To date, the business has supported more than 1,200 companies in some 150 countries. In September, the firm reported revenue growth of more than a quarter in its 2021/22 financial year ahead of its forthcoming 21st anniversary.