Global human resources company Deel announced this week that it is acquiring PaySpace, a provider of payroll and human resource services. Deal terms were not disclosed.
Founded 20 years ago, PaySpace provides native payroll engines in 44 countries across Africa and the Middle East. Heineken, Coca-Cola and Puma Sports are among its 14,000-plus customers. Deel has more than 20,000 customers in more than 150 countries. The company recently bought human resources firm Zavvy.
“The acquisition of PaySpace is a game changer for our customers, giving them truly global coverage and faster, more flexible payroll for their teams,” Deel CEO Alex Bouaziz said in a statement. “This news, combined with our 2022 acquisition of APAC payroll provider PayGroup, makes Deel one of the most comprehensive HR and payroll solutions on the market.
Bouaziz said cobbled-together systems are ineffective in a global economy, as they produce errors, delays, a poor experience, and possibly compliance issues. With its global payroll product for enterprise customers its fastest-growing offering, Deel’s acquisition of PaySpace means the company owns the full HR stack: entities in more than 100 countries, local teams (legal, HR, payroll), and local payroll engines in 50-plus countries across six continents. The goal is to serve 100 countries on the same native, global payroll engine within the next four years.
“PaySpace is a great fit for Deel because the company was already a market leader in MEA and was looking to expand globally,” Bouaziz added. “Their founding team is extremely talented and brings a ton of payroll expertise and passion, especially working with global brand names.”
Bouaziz said Deel recently reached $500 million in annual recurring revenue, doing it within five years of its founding.
“We started Deel because everyone deserves a great work experience, no matter where they are in the world,” Bouaziz concluded. “Today’s news is a big step toward realizing that vision.”