Deel acquires Zavvy to ‘fill in that missing piece of our global HR offering’

2023 was a booming year for HR tech acquisitions, and 2024 is proving to be no different.

Hot on the heels of Workday announcing its intention to buy HiredScore, Deel, a HR tech platform aimed at global teams valued at over $12 billion, has completed its acquisition of Zavvy.

Founded in 2021 in Germany, Zavvy sits in the performance management and learning and development space – it leverages AI to completely bespoke career journeys and development plans for individual employees.

The financial terms of the deal were not disclosed, but Zavvy’s product will be integrated into a new product suite called Deel Engage, costing $20 per user per month.

Plus, Zavvy’s entire team will move over to Deel as part of the acquisition.

This marks Deel’s sixth acquisition since it was founded in the US in 2018 – other deals include Capbase in 2023, Paygroup in 2022 and Zeitgold in 2021.

Helping Deel become a HR one-stop-shop?

For Deel’s co-founder and CEO Alex Bouaziz the beauty of this acquisition is it allows Deel to “now fill in that missing piece of our global HR offering”.

“It’s the perfect fit”, Bouaziz adds.“It’s the perfect fit”, Bouaziz adds.

Talking exclusively to UNLEASH, Bouaziz shares: "Our customers told us they wanted a company that could offer payroll, HR and people management. Many companies have to use four+ different tools to manage the same capabilities we now have at one price, from one company."

Instead, customers want a one-stop-shop. Bouaziz believes Deel has "delivered in a big way" through this acquisition.

He adds that since the announcement, Deel and Zavvy customers have welcomed the announcement; this is "because it means fewer tools and more capabilities like hiring, payroll, and compliance support all in one place".

HR industry analyst Pete Tiliakos– who serves as managing partner at 3SixtyInsights – agreed that “Zavvy’s people enablement technology is a perfect complement to the broader Deel ecosystem of global employment solutions".

He adds: “The addition is well-timed in enabling employers to develop and retain skills and talent through highly personalized learning and development experiences, while providing employers with a single platform for compliant global employment and talent enrichment.”He adds: “The addition is well-timed in enabling employers to develop and retain skills and talent through highly personalized learning and development experiences, while providing employers with a single platform for compliant global employment and talent enrichment.”

Mehmet Yilmaz, CEO and co-founder of Zavvy commented: “We started Zavvy to help unlock people’s work potential.

"Joining Deel - the leading HR platform for tomorrow’s workforce - will greatly accelerate this mission.

"Both companies are passionate about driving innovation in the HR sector, with a focus on hiring and nurturing great talent around the world.”

Zavvy’s AI capabilities were particularly top of mind for Bouaziz and Deel when making the purchase.

Bouaziz tells UNLEASH that AI is Zavvy’s “secret sauce”.Bouaziz tells UNLEASH that AI is Zavvy’s “secret sauce”.

"Unlike other people management companies where AI is sprinkled on top of a heritage tech stack, Zavvy was built with AI embedded across its suite of products," adds Bouaziz.

Stay tuned to see what else Deel has planned for 2024.

Bouaziz gives UNLEASH a sneak peek by sharing that big news is coming, but Deel will also "continue our focus on improving the customer experience and product capabilities in areas like payroll, HRIS, immigration, and employer of record hiring".