Global HR company Deel has completed its second acquisition in a week.
After buying Zavvy last week, it has acquired PaySpace for an undisclosed sum. This is Deel's second acquisition in the payroll space.
What does the future hold for global payroll?
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It may only be March, but the HR tech market is already looking strong for 2024.
One company leading the way this year is Deel – the global HR tech company has just acquired its second company in a week.
Hot on the heels of its purchase of Zavvy last week, Deel has bought Africa-based payroll giant PaySpace for an undisclosed sum. This is one of Deel’s largest acquisitions to date, and builds on a previous 2022 payroll acquisition in Asia-Pacific of PayGroup.
For Deel’s co-founder and CEO Alex Bouaziz, this acquisition is “a game changer for our customers”; Deel’s customers include Nike, Hermes, Ubisoft, Shopify and Klarna.
PaySpace was founded two decades ago, operates in 44 countries across Europe, the Middle East, Latin America and Africa, and serves 14,000 customers including Heineken, Coca-Cola and Puma.
Bouaziz exclusively tells UNLEASH that the deal means that “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,” adds Bouaziz.
“Our goal is to serve 100 countries on the same native, global payroll engine within the next four years.”
Deel and the future of payroll?
Talking about the deal – why was now the right time to buy PaySpace?
Bouaziz tells UNLEASH: “PaySpace is a great fit for Deel because the company was already a market leader in EMEA 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.
“Payspace has built the most technologically advanced native payroll engines in 44 countries across Africa and the Middle East.
Our team looked at many global payroll players, and PaySpace emerged as the best of the best.”
This acquisition also comes as Deel reaches the milestone of 3,000 employees across 100 countries and $500 million in annual recurring revenue just five years after its founding.
2024 has kicked off with a bang with these two acquisitions in a week of each others – let’s see what the rest of the year has in store.
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