Deel Inc., a global employer-of-record platform headquartered in San Francisco, acquired PaySpace, a payroll and human resource services provider operating in Europe, Latin America, the Middle East and Africa.
With the acquisition, Deel said it is the first global payroll and employer-of-record provider with its own full-stack payroll engine in 50 countries.
“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,” Alex Bouaziz, co-founder and CEO of Deel, said in a press statement.
PaySpace has more than 14,000 customers, including multinationals such as Heineken, Coca-cola and Puma Sports. PaySpace’s offices are in Mauritius and South Africa.
“We are not disclosing the sum of the acquisition,” Bouaziz said in an email to SIA. “But this is one of Deel’s largest acquisitions to date. Any figures out there are purely speculative.”
The acquisition was finalized in February.
“With our cloud-native proprietary technology, PaySpace can assume the role of an exclusive calculation engine for Deel in the global market,” according to a blog post by PaySpace. “It is this power that Deel recognized, and it will propel them to be the first EOR with their own multi-country global payroll calculation engine.”
Deel is also an existing PaySpace customer in 10 African countries and a beta customer in Brazil and the UK, according to the post.
“Our collective experience to date has shown great potential for future growth, and this acquisition sets the stage for fast-tracked country localization through additional compliance by Deel and tech & build by PaySpace,” the post said.
Plans call for PaySpace to remain as a standalone business and become a subsidiary of Deel. It will become PaySpace by Deel.
The deal follows Deel’s acquisition of Zavvy, a Munich, Germany-based AI-powered people-enablement platform, in February.
Deel also announced that it has achieved $500 million in annual recurring revenue organically outside of the PaySpace acquisition. It has more than 3,000 team members in more than 100 countries.