Deel acquires PaySpace, solidifying lead in global payroll industry

Deel, the leader in global payroll and HR technology, has announced its acquisition of African-based payroll and HR company PaySpace. While the acquisition amount remains undisclosed, this significant move places Deel at the forefront of the global payroll industry, bolstering its innate infrastructure and coverage. The company also registered a momentous accomplishment, hitting over US$500M in annual recurring revenue, within five years since its inception.

With more than two decades of technological expertise in payroll, PaySpace has been a disruptor in the field, offering payroll engines and HR services in 44 countries across Europe, Latin America, the Middle East, and Africa. It boasts of a strong client base including multinational giants such as Heineken, Coca-Cola Beverages, and Puma Sports, testament to its scalability and reach.

Post acquisition, Deel will be the pioneer global payroll & Employer of Record (EOR) having its own full-stack payroll engine. This will be localized in 50 countries and integrated into its own offering. Providing a single interface for HR organizations worldwide to manage their global teams, Deel's system promises greater efficiency and control for companies, rapid payroll cycles, and more localized compliance insights. Companies will also have the ability to alter their payroll at their discretion.

Alex Bouaziz, Deel co-founder and CEO, expressed, "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."

This news trails Deel's acquisition of leading APAC payroll provider PayGroup, which signifies that Deel now possesses the complete HR stack: entities, local teams (comprising legal, HR, payroll), and local payroll engines across six continents. The company has a set ambition to serve 100 countries with local payroll engines in the next four years.

Deel managed to ramp up US$500M in annual recurring revenue outside of this acquisition. Within five years, the firm has expanded to employing over 3,000 team members in more than 100 countries. It has been EBITDA positive and consistently generating cash for the past 18 months.

Deel has also unveiled its move to acquire Zavvy, an employee-enablement platform. Zavvy facilitates a central hub that ensures career development, performance management, and training programmes. HR leaders are provided with the tools to run performance and compensation analysis for top performers, present a library of AI-backed Learning and Development courses, and formulate bespoke career paths and planning modules for their teams. This acquisition further strengthens Deel's HR suite, enhancing its reputation as a one-stop-shop solution for global teams.