On the heels of its acquisition of Zavvy last week, global HR company Deel ($12B valuation; 20k+ customers in 150+ countries) announced that it has acquired payroll giant PaySpace and achieved $500M in annual recurring revenue. CEO Alex Bouaziz wrote about the news below;
I’m thrilled to share that Deel is acquiring PaySpace! PaySpace is a market leader with more than 20 years of payroll and HR experience. The company has built the most technologically advanced native payroll engines in 44 countries across Africa and the Middle East. It has over 14,000 customers, including big brands like Heineken, Coca-Cola and Puma Sports. Our team looked at many global payroll players, and PaySpace emerged as the best of the best.
The acquisition of PaySpace is a game changer for our customers, giving them truly global coverage and faster, more flexible payroll for their teams. This news, combined with our 2022 acquisition of APAC payroll provider PayGroup, makes Deel one of the most comprehensive HR and payroll solutions on the market.
The payroll industry wasn’t built global-first. Companies have, over time, developed or bought up local engines and stitched together systems to market them as global. This results in payroll errors and delays, poor workforce experience, even compliance issues. Not until the world of work became more global did HR leaders start realizing payroll systems aren’t cutting it. Global payroll is critical to get right, yet hard to do well.
Deel was founded as a global-first work solution, and our payroll ambitions are no different. Our global payroll product for enterprise customers is our fastest-growing offering, and our acquisition of PaySpace means we now own the full HR stack: entities in more than 100 countries, local teams (legal, HR, payroll), and local payroll engines in 50+ countries across six continents. No other payroll company owns this level of infrastructure. Our ambition is to serve 100 countries on the same native, global payroll engine within the next four years.
PaySpace is a great fit for Deel because the company was already a market leader in MEA and was looking to expand globally. Their founding team is extremely talented and brings a ton of payroll expertise and passion, especially working with global brand names.
I’m also proud to announce that we’ve hit $500m in annual recurring revenue (ARR) within five years of our founding. This milestone is only possible because of the trust our customers, partners, and their teams put in us to deliver for them. A big thank you to them and to our own amazing teams. Let’s keep going!
We started Deel because everyone deserves a great work experience, no matter where they are in the world. Today’s news is a big step toward realizing that vision.
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 130+ 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.
