Deel acquiring PaySpace for $100 million, ARR already over $500 million
In under five years, the company has grown to 3,000 team members in more than 100 countries. Deel noted it has been EBITDA positive and generating cash for a year and a half
Global HR company Deel announced on Tuesday that it is acquiring African-based payroll and HR solution company PaySpace. Deel did not disclose the cost of the acquisition, but according to estimates it is believed to be around $100 million and is one of Deel’s largest acquisitions to date. Just last week Deel announced the purchase of German-based people development platform Zavvy for around $20 million.
Deel also announced Tuesday that it has achieved over $500 million in annual recurring revenue (ARR) organically, outside of the PaySpace acquisition. In under five years, the company has grown to 3,000 team members in more than 100 countries. It added that it is EBITDA positive and has been generating cash for a year and a half.
Deel revealed in January 2023 that it hit $295 million in ARR at a $12 billion valuation, up from just $57 million ARR a year earlier.
PaySpace has more than 20 years of payroll technology experience, providing payroll engines and HR services in 44 countries across Europe, Latam, Middle East and Africa for more than 14,000 customers. Customers include multinationals across various industries such as Heineken, Coca-Cola Beverages and Puma Sports SA.
Deel now owns the full HR stack - entities, local teams (legal, HR, payroll), and local payroll engines - across six continents. Its four-year ambition is to serve 100 countries with native payroll engines, and this acquisition is a significant step toward that goal.
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“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,” said Deel co-founder and CEO Alex Bouaziz. “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.”
