Israeli insurtech firm WeSure merges with fintech firm Hourly

WeSure US, an insurance company, has entered a merger agreement with payroll-focused fintech firm Hourly, valuing the combined company at US$53 million.

Hourly will become a wholly owned subsidiary of WeSure Global Tech, with Hourly shareholders receiving 49% of WeSure US’s fully diluted share capital.

Additionally, the merged entity raised US$10 million from existing investors and WeSure shareholders.

Founded in 2018, Hourly provides an integrated platform for payroll, attendance, tax, and workers’ compensation insurance, reporting US$3.5 million in 2024 revenue.

Hourly CEO Tom Sagi will lead the combined entity, supporting WeSure’s US expansion strategy through mergers and acquisitions.

🔗 Source: Calcalist

🧠 Food for thought

1️⃣ Insurance-fintech convergence accelerates as insurers seek innovation partners

The WeSure-Hourly merger exemplifies a broader trend where insurance companies increasingly partner with fintechs to drive innovation and market expansion.

This strategic approach aligns with industry research showing nearly 70% of insurance executives believe partnerships will define future innovation in the sector 1.

Similar transactions have occurred elsewhere, such as when Travelers Companies acquired a 60% stake in Canadian fintech Zensurance for approximately $12.25 million to enhance its digital capabilities 2.

These partnerships reveal how traditional insurers recognize that their internal structures may not adequately support the technological innovation needed to meet evolving customer expectations.

The WeSure-Hourly deal specifically combines insurance expertise with payroll management technology, creating potential synergies in serving small businesses with hourly workers, a market segment that benefits from integrated insurance and payroll solutions.

2️⃣ Payroll software companies face differentiation challenges in crowded market

Hourly operates in a highly competitive payroll software landscape with numerous established alternatives including Gusto, QuickBooks Payroll, SurePayroll, and Paychex Flex 3.

This merger could help Hourly differentiate by integrating insurance offerings, a strategic advantage in a market where standalone payroll providers must compete primarily on features, pricing, and user experience.