Tue. May 28th, 2024
Payroll ir35male hand pressing payroll key button over blue abstract background

News comes as Deel hits 500M+ in annual recurring revenue within five years

Global payroll and HR company Deel announced today that it is acquiring African-based payroll and HR company PaySpace for an undisclosed amount. It also announced that it has achieved $500M in annual recurring revenue (ARR) within five years of founding. The acquisition of PaySpace positions Deel as a market leader in global payroll, deepening Deel’s native infrastructure and coverage.

PaySpace has more than 20 years of payroll technology experience, providing payroll engines and HR services in 44 countries across Europe, Latin America, Middle East, and Africa for more than 14,000 customers. Its size, expertise, and proprietary disruptive payroll technology give it unrivaled scale and reach. Customers include multinationals across various industries such as Heineken, Coca-Cola Beverages, and Puma Sports.

By acquiring PaySpace, Deel will become the first global payroll & Employer of Record (EOR) with its own full-stack payroll engine localized in 50 countries and integrated into its offering. Deel has the ability to be the system of record for HR organizations worldwide and can give its customers a simple and single interface to manage their global teams. All of this results in greater efficiency and control for companies, faster payroll cycles, more localized compliance insights relevant to their workforce, plus the ability to make changes to their payroll at any time.

The news follows Deel’s acquisition of leading APAC payroll provider PayGroup. Deel now owns the full HR stack: entities, local teams (legal, HR, payroll), and local payroll engines across six continents. Its four-year ambition is to serve 100 countries with native payroll engines, and this acquisition is a significant step toward that goal.

 

Deel co-founder and CEO Alex Bouaziz said, “Global payroll is hard to do and critical to get right. As a company, you want assurances you can pay your teams on time, compliantly, anywhere in the world. PaySpace’s single-platform payroll expertise and breadth of coverage, particularly in Africa and the Middle East, combined with PayGroup’s presence in APAC, will give Deel customers the reach they need to grow their businesses globally. Our long-term vision is to be the most comprehensive payroll system in the world.”

Deel also announced today that it has achieved $500M+ in annual recurring revenue organically, outside of this acquisition. In under five years, the company has grown to 3,000+ team members in more than 100 countries. It has been EBITDA positive and consistently generating cash for a year and a half.

 

Last week, Deel announced its acquisition of Zavvy, a people-enablement platform. Zavvy offers a central hub that covers career development, performance management, and training programs. HR leaders can run performance and compensation analysis for top performers, provide a library of AI-backed L&D courses, and create bespoke career paths and planning modules for their teams. The move rounds out Deel’s HR suite of products, making it even more of a one-stop-shop for global teams.

 

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About Deel

Deel is an all-in-one HR solution for global teams. It helps companies simplify every aspect of managing an international workforce, from culture and onboarding, to local payroll, compliance and now, people management. It owns 120+ country entities and manages in-house, in-country payroll teams, in addition to offering Employer of Record, contractor, immigration and HRIS services worldwide.

 

About PaySpace

Cloud-native from inception, the PaySpace proprietary technology was developed to operate in a highly secure and operationally efficient manner. It was specifically designed to provide multi-country payroll and HR functionality with built-in compliance for organizations of all sizes and industry sectors. It provides a single truth for payroll and HR data – and the tools to make strategic decisions at every level. PaySpace has expanded into 40+ African countries as well as the Middle East, with an imminent launch in the United Kingdom (UK) and Brazil. It is scalable, configurable, highly secure, and easy-to-use allowing anytime, anywhere access to empower payroll and HR teams, driving organizational development.

By Editor