San Francisco-based HR and payroll company Deel has acquired PaySpace, a South African HRTech company, for an undisclosed sum. PaySpace, boasting over two decades of expertise in payroll technology, has catered to more than 14,000 businesses—including renowned names such as Heineken, Coca-Cola Beverages, and Puma Sports—across four continents: Africa, the Middle East, Europe, and Latin America.
In addition to acquiring PaySpace, Deel has proudly announced that it has achieved $500 million in annual recurring revenue organically within five years since its inception.
“Managing global payroll is challenging yet crucial. Businesses seek assurance in their ability to compensate their teams promptly and compliantly, regardless of location,” remarks Deel’s co-founder and CEO, Alex Bouaziz. “PaySpace’s proficiency in single-platform payroll solutions and extensive coverage, especially in Africa and the Middle East, coupled with PayGroup’s presence in APAC, will empower Deel customers to expand their global footprint effectively. Our overarching vision is to establish the most comprehensive payroll system worldwide.”
Managing global payroll is challenging yet crucial. Businesses seek assurance in their ability to compensate their teams promptly and compliantly, regardless of location.
Deel’s co-founder and CEO, Alex Bouaziz.
With the acquisition of PaySpace, Deel solidifies its position as arguably the first global payroll and Employer of Record (EOR) company, equipped with a full-stack payroll engine localized in 50 countries, seamlessly integrated into its core offering.
Deels Growth Journey
In 2023, Deel processed over $7 billion in payroll for its extensive client base of more than 20,000 businesses—including high-profile names such as BBC, Klarna, Coinbase, Shopify, and Reddit—spanning across 150+ countries. The company has successfully raised at least $500 million in funding, boasting a current valuation of $12 billion.
On the other side, Johannesburg-based PaySpace, established in 2007 by the trio of brothers Bruce, Clyde, and Warren Clark, along with George Karageorgiades, has experienced a significant growth rate of over 30% annually, as reported by Managing Director Sandra Crous.
Reflecting on the acquisition, Bouaziz shared with TechCrunch, “We were already utilizing PaySpace for our payroll needs in 10 countries. Our internal team was very eager to acquire them, attracted by their capability for on-the-spot calculations. Their technology is among the best we’ve encountered. Convincing them took considerable effort.”
