South African payroll and HR company PaySpace has been acquired by the US firm Deel in a partnership that makes the latter the market leader in the global payroll space.
PaySpace provides multi-country payroll and HR functionalities with built-in compliance for organisations of all sizes and industry sectors. It operates in 44 countries across the world, for more than 14,000 customers including multinationals such as Heineken, Coca-Cola Beverages and Puma Sports SA.
Deel, meanwhile, is a payroll and compliance provider based in San Francisco, which helps companies simplify every aspect of managing an international workforce, from culture and onboarding, to local payroll, compliance and now, people management. It owns more than 130 country entities and manages in-house, in-country payroll teams.
By acquiring PaySpace for an undisclosed amount, Deel will become the first global payroll and Employer of Record (EOR) with its own full-stack payroll engine localised in 50 countries and integrated into its offering.
“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,” said Deel co-founder and CEO Alex Bouaziz.
Clyde van Wyk, PaySpace director, said Deel, like PaySpace, strives to evolve its offering through disruption.
“We set out to modernise the payroll industry, which was burdened by manual processes and stringent legislative and compliance requirements, much like Deel revolutionised 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,” he said.
