US-based HR Startup Deel has announced it is acquiring African-based payroll and HR software and services company PaySpace for an undisclosed amount.
About Payspace
The Johannesburg-based PaySpace currently has over 14,000 customers using its software and services in 44 countries across Europe, Latin America, the Middle East, and Africa.
Brothers Bruce, Clyde, and Warren Clark, along with George Karageorgiades, founded PaySpace in 2007 as a cloud-based payroll and human resources platform aimed at streamlining the laborious payroll runs and backup procedures associated with traditional payroll and HR software prevalent at the time.
Its customers include multinationals across various industries such as Heineken, Coca-Cola Beverages, and Puma Sports SA.
By The Numbers
Deel recently crossed $500 million in annual recurring revenue (ARR). The company claims that it has been EBITDA positive since September 2022 and still has $600 million left in the bank.
Digging Deeper
Deel now owns the full HR stack — entities, local teams (legal, HR payroll), and local payroll engines — across six continents.
The company recently announced it had picked up Munich-based Zavvy, an AI-based “people development” startup building tools for personalized career progression, training, and performance management.
What They’re Saying
PaySpace Director Clyde van Wyk said: “Like PaySpace, Deel strives to evolve its offering through disruption. We set out to modernize the payroll industry, which was burdened by manual processes and stringent legislative and compliance requirements, much like Deel revolutionized global hiring.”
Why This Matters
Deel is trying to make a big push into the enterprise with the PaySpace acquisition.
Deel has about 25,000 customers, including Klarna, Shopify and Hermes. The company now owns over 150 entities globally and manages in-house in-country payroll teams in over 70 countries, in addition to offering Employer of Record, contractor, immigration, HRIS, and performance management services.
Source: Techcrunch
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