San Francisco-based HR and payroll company Deel has made a strategic move to solidify its position in the global market with the acquisition of PaySpace, a South African leader in HR technology. While the acquisition price remains undisclosed, the deal brings together two established players with ambitious goals.
PaySpace boasts over two decades of experience in payroll technology, serving a diverse clientele of over 14,000 businesses across four continents – Africa, the Middle East, Europe, and Latin America. This impressive reach includes household names like Heineken, Coca-Cola Beverages, and Puma Sports.
This acquisition comes alongside another significant milestone for Deel. Within just five years of its founding, the company has achieved a remarkable $500 million in annual recurring revenue – a testament to the growing demand for their services.
“Global payroll is a complex but critical function,” says Deel co-founder and CEO Alex Bouaziz. “Companies need the assurance that their teams will be paid on time and compliantly, regardless of location.” He goes on to highlight the strategic advantage gained through PaySpace’s expertise. “Their single-platform approach and extensive coverage, particularly in Africa and the Middle East, combined with PayGroup’s presence in APAC, creates an unparalleled network for Deel clients seeking global expansion.” Deel’s long-term vision is to become the world’s most comprehensive payroll system, and this acquisition is a significant step towards achieving that goal.
The combined entity positions Deel as a potential frontrunner in the global Employer of Record (EOR) space. The acquisition equips them with a full-stack payroll engine localized in an impressive 50 countries, seamlessly integrated into their core offerings. Deel’s existing reach is already substantial, with over $7 billion in payroll processed for more than 20,000 clients across 150+ countries. These clients include industry giants like BBC, Klarna, Coinbase, Shopify, and Reddit. Furthermore, Deel boasts a current valuation of $12 billion, solidifying its position as a major player in the HR tech landscape.
PaySpace, founded in 2007 by a team of South African entrepreneurs – the Clark brothers (Bruce, Clyde, and Warren) and George Karageorgiades – has itself seen impressive growth, experiencing annual growth exceeding 30%, according to managing director Sandra Crous.
Interestingly, Deel was previously a client of PaySpace, utilizing their services for payroll in 10 countries. This firsthand experience with PaySpace’s technology played a key role in the acquisition. “Our internal team was extremely impressed and eager to bring them on board,” Bouaziz told TechCrunch. “Their technology is among the best we’ve encountered, and convincing them to join forces was a priority for us.”
The Deel-PaySpace deal signifies a major shift in the global HR tech landscape. Deel’s ambition to become a one-stop shop for global payroll solutions is receiving a significant boost with PaySpace’s expertise and reach. This move will be keenly observed by businesses of all sizes seeking streamlined and compliant payroll solutions across international borders.tunesharemore_vert
Source: BenjaminDada