Deel, a global HR solutions company, has announced plans to acquire PaySpace, a payroll and HR service provider, on March 6, 2024. 

With this acquisition, Deel aims to strengthen its global presence across markets in the Middle East, Africa, and Asia Pacific regions by acquiring an Africa-based payroll and HR solutions company. This move establishes the company as the first global payroll and Employer of Record (EOR), offering a user-friendly interface for efficiently managing global teams from a single platform. The acquisition also enhances the platform’s operational efficiency and control for companies, reduces payroll processing times, provides customised compliance insights tailored to their workforce, and offers flexibility for making necessary payroll adjustments.

The company has not disclosed the amount for the acquisition deal but has declared its annual recurring revenue to be $500 million since its inception five years ago. 

Commenting on the new acquisition, Alex Bouaziz, co-founder and CEO of Deel 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.” 

The company recently acquired APAC’s leading payroll provider, PayGroup, for its comprehensive HR stack, encompassing entities, local teams (legal, HR, payroll), and local payroll engines across six continents. Furthermore, the company acquired Zavvy, an AI-backed people-enablement platform designed for career development, performance management, and training programmes.