- Acquisition at undisclosed value deepens the US firm’s HR infrastructure, and fuels direct and indirect global expansion and reach.
- PaySpace offers payroll engines and HR services across 44 countries in Europe, Latin America, the Middle East, and Africa markets.
- PaySpace is serving more than 14,000 customers, including multinationals Heineken, Coca-Cola Beverages, and Puma Sports SA.
American Global HR payroll engine provider Deel is acquiring African-based payroll and HR services firm, PaySpace, a move that will see the former solidify its position as one of the biggest entities in the human resource management segment internationally.
This acquisition, which has been done for an undisclosed amount, marks one of the company’s largest acquisitions to date, the company said even as it edges closer to having a presence in over 100 countries.
CTECH estimates the transaction to be valued at approximately $100 million. This news comes on the heels of the firm’s recent acquisition of the German-based people development platform Zavvy, a deal worth around $20 million, which was announced just a week ago.
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.”
HR payroll engine giant PaySpace serves clients across Africa, Latin America, and Middle East
Currently, PaySpace boasts over 20 years of industry experience in the provision of payroll technology, offering payroll engines and HR services across 44 countries in Europe, Latin America, the Middle East, and Africa markets.
Clyde van Wyk, PaySpace Director explained, ”Like PaySpace, Deel strives to evolve its offering through disruption. We set out to modernize the payroll industry, which was burdened by manual processes and stringent legislative and compliance requirements, much like Deel revolutionized global hiring.
“This acquisition brings together leading employment services and payroll technology expertise, delivering a unique and powerful customer offering with unrivaled automation, flexibility and scalability.”
At the moment, PaySpace is serving more than 14,000 customers, including multinational corporations such as alcoholic drinks giant Heineken, Coca-Cola Beverages, and Puma Sports SA.
With its extensive size, expertise, and innovative payroll technology, PaySpace has achieved unmatched scale and reach in the industry.
With the acquisition of PaySpace, the California-based firm is set to become the first global payroll and Employer of Record (EOR) with its own full-stack payroll engine localized in 50 countries, seamlessly integrated into its offering.
This strategic move positions the American giant as the system of record for HR organizations worldwide, offering its customers a simple and unified interface to manage their global teams.
This development promises greater efficiency and control for companies, quicker payroll cycles, access to localized compliance insights relevant to their workforce, and the flexibility to make changes to their payroll at any time, the company explained.
Over the years, the American firm has been making waves in the global HR and payroll industry, with its recent acquisition of leading APAC payroll provider PayGroup.
This move has positioned Deel as the owner of the full HR stack, including entities, local teams (legal, HR, payroll), and local payroll engines, across six continents.
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Deel eyes serving 100 countries with HR payroll engine
The latest move aligns with the US company’s ambitious goal of serving 100 countries with native payroll engines within the next four years.
In addition to this acquisition, the firm will have achieved a significant milestone by surpassing $500 million in annual recurring revenue (ARR) organically. This growth has been achieved in under five years, with the company expanding to 3,000 team members in over 100 countries.
Furthermore, the US firm has demonstrated financial stability by being EBITDA positive and consistently generating cash for the past year and a half.
Since its establishment in 2018, the hiring and payments services provider has evolved into an all-in-one HR and payroll solution for global teams.
With ownership of over 150 entities worldwide and in-house in-country payroll teams in more than 70 countries, Deel offers a comprehensive suite of services, including Employer of Record, contractor management, immigration support, HRIS, and performance management services.
