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WeSure Technologies USA (WeSure USA) has signed a merger agreement to acquire American company Hourly, which provides an innovative digital platform for managing payroll and employee benefits for small and medium-sized businesses (SMEs) in the U.S.
The deal is structured as a reverse triangular merger, at the end of which WeSure USA will own 100% of Hourly’s shares, while Hourly’s shareholders will hold 49% of WeSure USA’s share capital on a fully diluted basis.
The transaction also includes a cash investment component: some of Hourly’s leading investment funds, together with WeSure Global Tech, will jointly invest 10 million Dollar in WeSure USA.
Emil Vainshel, Chairman of WeSure Global Tech Group: “I am pleased to announce that WeSure Global Tech is taking another significant step in expanding its international operations, with an emphasis on strengthening our U.S. activities, which are expected to become a key growth engine in the coming years. The deal with Hourly, whose shareholders include top-tier investment funds, aligns with our strategy to grow in the U.S. through mergers and acquisitions.
Hourly specializes in payroll solutions and offers an advanced digital platform that is highly synergistic with our U.S. operations – both for the SME target market and for employer and employee insurance products. I believe this partnership will enable us to reach new customers and offer a broader range of insurance solutions. Hourly’s unique technology complements the needs of our existing SME clients.
Hourly has invested significant resources in building its technological and business infrastructure, and we believe it is now ready for growth and profitability. I thank Hourly’s shareholders and the six investment funds joining this deal for their confidence in us and wish us all success in this new shared journey.”
Tom Sagi, CEO of Hourly: “The merger with WeSure USA is an important milestone for Hourly. Tens of millions of dollars have been invested in developing our unique technology. This strategic step allows us to deepen our focus on core areas – payroll and employee benefits – while leveraging synergies with WeSure’s advanced technologies and professional expertise, especially in the insurance field.”
About Hourly
Hourly is a private American company founded in 2018 by Tom Sagi (CEO), Shai Litvak (former CTO, deceased), and Amir Pintoch (Chairman). The company provides payroll management services primarily for small and medium-sized businesses employing hourly workers. Its innovative digital platform integrates payroll, attendance tracking, tax payments, and workers’ compensation insurance, aiming to streamline and simplify these processes.
Hourly’s main clients are businesses in construction, restaurants, transportation, and commercial services – sectors representing about 30% of the hourly workforce in the U.S. There are an estimated 80 million hourly workers in the U.S., and the annual workers’ compensation insurance market is estimated at 56 billion Dollar, characterized in recent years by solid underwriting profitability.
The U.S. payroll management industry is valued at approximately 21 billion Dollar annually. Hourly holds licenses to provide payroll services and act as an insurance underwriting agency in many U.S. states. Initially operating in California, the company has since expanded nationwide.
As part of the deal, Both WeSure USA and Hourly’s major investors signed several investment agreements, committing to invest 5 million Dollar each (total 10 million Dollar) in exchange for preferred shares. Investors will also receive an equal amount of options for additional preferred shares, valid for 10 years, at a valuation of 168 million Dollar – reflecting Hourly’s most recent funding round before this transaction.
The investment funds will mainly support expansion of WeSure’s U.S. operations.
