San Francisco-based human resources (HR) and payroll company Deel announced the acquisition of PaySpace, a South African leader in HR technology. The acquisition, for an undisclosed sum, marks a significant step for Deel in its quest to become the world's most comprehensive payroll system.
PaySpace boasts over two decades of experience in crafting payroll solutions, serving over 14,000 businesses across four continents, including Africa, the Middle East, Europe, and Latin America. Their impressive client list includes names like Heineken, Coca-Cola Beverages, and Puma Sports.
This strategic move coincides with Deel achieving a major milestone: reaching $500 million in annual recurring revenue within five years of its founding. "Ensuring timely and compliant global payroll is complex but crucial," says Deel co-founder and CEO Alex Bouaziz. "Our clients require the confidence of knowing their teams are paid accurately, anywhere in the world."
By combining PaySpace's deep expertise in single-platform payroll and extensive coverage, especially in Africa and the Middle East, with Deel's existing capabilities and PayGroup's presence in the Asia-Pacific region, Deel is now positioned to offer its customers unparalleled global reach. "Our long-term vision is to be the most comprehensive payroll system globally," Bouaziz adds.
This acquisition arguably makes Deel the first global payroll and Employer of Record (EOR) company with a full-stack payroll engine localized in 50 countries and seamlessly integrated into its core offering.
Deel has processed over $7 billion in payroll for its more than 20,000 clients in over 150 countries, including BBC, Klarna, Coinbase, Shopify, and Reddit. The company has secured substantial funding of at least $500 million and boasts a current valuation of $12 billion.
Meanwhile, Johannesburg-based PaySpace, founded in 2007 by a quartet of entrepreneurs – Bruce, Clyde, and Warren Clark, alongside George Karageorgiades – has enjoyed consistent growth, exceeding 30% annually for several years, according to managing director Sandra Crous.
"We were already using PaySpace's services for payroll in 10 countries," revealed Bouaziz to TechCrunch. "Our team was incredibly impressed by their technology, one of the best we've encountered. Acquiring them was a top priority, and convincing them took considerable effort."
This acquisition signifies Deel's commitment to becoming the go-to solution for global businesses seeking streamlined and efficient payroll management across diverse geographical landscapes.
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