Deel reportedly acquires PaySpace for $100 million. PaySpace announces its role as the sole calculation engine for Deel, positioning itself as the inaugural EOR equipped with a multi-country global payroll calculator.
Post-acquisition, PaySpace will transition into a subsidiary of Deel while maintaining operational autonomy. The company assures that its existing team will stay intact and dedicated to delivering its range of services.
Deel Reportedly Acquires PaySpace
Established in 2007 by the Clark brothers—Bruce, Clyde, and Warren—alongside George Karageorgiades, the South African entity caters to more than 14,000 clients, including prominent brands like Heineken, Coca-Cola Beverages, and Puma Sports.
Spanning 44 countries across Europe, Latin America, the Middle East, and Africa, the seasoned company has reportedly achieved an annual sales growth rate exceeding 30%. PaySpace has collaborated with Deel, furnishing the latter with payroll services in approximately 10 African nations.
What is Deel
Deel, valued at $12 billion, is a human resources startup facilitating operations for businesses in over 70 countries, encompassing recruitment, payment processing, and workflow management. Noteworthy clients include industry giants such as Reddit, Shopify, Nike, and Red Bull. Deel asserts its ownership of the complete HR suite across six continents.
The firm has extended its services to all African nations except the Democratic Republic of the Congo, Guinea-Bissau, Liberia, and the Central African Republic.
What This Acquisition Means For Deel
The acquisition empowers Deel to harness PaySpace’s payroll proficiency and coverage in Africa and the Middle East. Additionally, it seeks to capitalize on PayGroup’s presence in the Asia-Pacific region, acquired in 2022, to advance its objectives and expand its reach.
CEO Alex Bouaziz of Deel remarked, “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 recent acquisition will amalgamate PaySpace’s payroll technology with Deel’s EOR (Employer of Record) services, culminating in unique offerings for the clientele.
Deel Now Inherits All 45 Payroll Engine Developed by PaySpace over the Years
Formerly possessing five payroll engines, Deel now inherits all 45 developed by PaySpace over the years. The company underscores its long-term aspiration to become the “most comprehensive payroll system in the world.”
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