Oscillate plc has signed conditional heads of terms to fully acquire Hi55 Ventures, trading as Hi, in a reverse takeover.
Shares in the investment issuer have been suspended pending completion of the deal, which is conditional on approval by shareholders of the company at a general meeting.
The FinTech platform, created to help companies unlock payroll and pay employees flexibly, is valued at £28 million by the deal, while Oscillate is valued at £2.7m.
A reverse takeover is a process whereby private companies can become publicly traded companies without going through an initial public offering.
Hi allows employees ‘freedom of pay’, which is the ability to access their salary as they earn it and for free, delivered in partnership with MasterCard. In doing so, Hi can externally finance the entire payroll of companies.
It says this improves cash flow, by unlocking a new source of working capital and helps attract and retain the best talent by increasing employee financial freedom, flexibility and wellbeing.
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Hi has been accepted onto both the Microsoft for Startups and the Mastercard Start Path accelerators.
“We are pleased to announce this potential transformative acquisition,” said Steve Winfield, non-executive director of Oscillate.
“We believe we have secured a good deal for shareholders, at an attractive premium to our current share price and, through the warrant provision, an opportunity for Oscillate shareholders to benefit from further appreciation in value of the enlarged group.”