Key Developments

US-Based Firm Deel Acquires South African Payroll Startup PaySpace

HR and payroll solutions provider Deel has announced the acquisition of PaySpace, a South African company offering similar services, in a move to strengthen its global footprint.

PaySpace is set to become Deel’s exclusive payroll calculation engine, propelling Deel towards becoming the first Employer of Record (EOR) with a multi-country global payroll calculator.

Following the acquisition, PaySpace will operate as a subsidiary of Deel while retaining its team and commitment to existing services.

Founded in 2007, PaySpace boasts over 14,000 clients, including well-known brands like Heineken, Coca-Cola Beverages Africa, and Puma.

The company has experienced consistent growth, reportedly exceeding 30% in annual sales, and operates in 44 countries across various regions.

Prior to the acquisition, PaySpace already partnered with Deel, providing payroll services in approximately 10 African countries.

This strategic move further strengthens Deel’s presence in Africa and the Middle East, complementing its 2022 acquisition of PayGroup, an APAC-based payroll provider.

Deel, valued at $12 billion, assists businesses in over 70 countries with various HR functions, including hiring, payment processing, and process management.

The company counts prominent players like Reddit, Shopify, Nike, and Red Bull among its clients.

With this acquisition, Deel aims to leverage PaySpace’s expertise and extensive network in Africa and the Middle East, combined with PayGroup’s presence in the Asia-Pacific region, to achieve its global expansion and scaling goals.

“Global payroll is complex but crucial to get right,” said Deel co-founder and CEO Alex Bouaziz. “This acquisition ensures we can pay our clients’ teams compliantly and on time, anywhere in the world.”

The combined entity will offer unique solutions to Deel’s clients by integrating PaySpace’s payroll technology with Deel’s existing EOR services.

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