- Deel, a US-based HR and payroll company, has announced that it will acquire PaySpace, a South African payroll and HR services company. However, the company didn’t reveal the financial terms of the acquisition.
- PaySpace says it will serve as Deel's exclusive calculation engine, propelling the company to become the first EOR with a multi-country global payroll calculator.
- Following the acquisition, PaySpace will become a subsidiary of Deel and will operate independently. The company’s team will remain in place and committed to its services, PaySpace said.
Founded in 2007 by three brothers — Bruce, Clyde, and Warren Clark — alongside George Karageorgiades, the South African company serves over 14,000 customers, including big brands such as Heineken, Coca-Cola Beverages, and Puma Sports.
With a presence in 44 countries across Europe, Latin America, the Middle East, and Africa, the nearly two-decade-old company has reportedly seen annual sales growth of over 30%.
PaySpace has been partnering with Deel, providing the company with payroll services in about 10 African countries.
Deel is a $12 billion human resources startup that assists businesses in over 70 countries with hiring, payment processing, and process management. Its customers include big players like Reddit, Shopify, Nike, and Red Bull. Deel claims that it now owns the full HR stack across six continents.
The company has served all African countries except the Democratic Republic of the Congo, Guinea-Bissau, Liberia, and the Central African Republic.
The acquisition allows Deel to leverage PaySpace's payroll expertise and coverage in Africa and the Middle East. It is also looking to leverage PayGroup's presence in APAC, which it acquired in 2022, to achieve its objectives and scale.
Deel's 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.”
This latest acquisition will combine PaySpace's payroll technology with Deels' EOR services, resulting in unique offerings for the company's clients.
Deel previously owned five payroll engines but will now have all 45 that PaySpace has built over the years. It also adds that its long-term goal is to be the "most comprehensive payroll system in the world.”
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