Deel, the global HR company has announced the acquisition of South African-based payroll and HR solution company PaySpace for an undisclosed amount.
PaySpace has more than 14,000 customers and is operational in 44 countries across Africa, Middle East, Europe and Latin America. It is known for its proprietary cloud native framework that is built as a single engine. Its platform allows easy configuration of additional countries through localization. These localization projects normally take years to complete, but with PaySpace’s innovative technology, it can localize much faster than any other payroll provider.
This acquisition makes Deel the first payroll and Employer of Record (EOR) to have its own full-stack payroll engine localized in 50 countries and integrated into its offering. Deel can now be the system of record for HR organizations across the world. The company can therefore give its customers a single interface to manage their global teams ensuring greater efficiency and control for companies, faster payroll cycles, more localized compliance insights relevant to their workforce, plus the ability to make changes to their payroll at any time.
Acquisition of PayGroup
Back in 2022, Deel acquired PayGroup, a payroll provider in the Asia pacific region. Deel now owns the full HR stack- entities, local teams (legal, HR, payroll), and local payroll engines – across six continents. The company’s 4 year vision is to serve over 100 countries with native payroll engines and these acquisitions help it move closer to its goals.
What They Said
Deel co-founder and CEO Alex Bouaziz said, “Global payroll is hard to do and critical to get right. As a company, you want assurances you can pay your teams on time, compliantly, anywhere in the world. 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. Our long-term vision is to be the most comprehensive payroll system in the world.”
Clyde van Wyk, PaySpace Director 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. This acquisition brings together leading employment services and payroll technology expertise, delivering a unique and powerful customer offering with unrivaled automation, flexibility and scalability.”
