Alex Bouaziz (Deel)
Deel, an Israeli startup and unicorn that deals with payroll solutions for firms with international staff, is acquiring African-based payroll and HR solution company PaySpace. The terms of the acquisition were not disclosed.
Deel also hit $500 million in annual recurring revenue (ARR), this within five years of its founding. A year ago Deel hit a $12 billion valuation.
PaySpace has more than 20 years of payroll technology experience, providing payroll engines and HR services in 44 countries across Europe, Latin America, the Middle East, and Africa for more than 14,000 customers. The firm’s customers include multinationals across various industries such as Heineken, Coca-Cola Beverages, and Puma Sports.
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By acquiring PaySpace, Deel said it will become the “first global payroll & Employer of Record (EOR) with its own full-stack payroll engine” localized in 50 countries and integrated into its offering. Deel has the ability to be the system of record for HR organizations worldwide and can give its customers a simple and single interface to manage their global teams.
Founded in 2018 by Israeli Alex Bouaziz. 28, a French Jew who immigrated to Israel, and Chinese entrepreneur Shuo Wang, Deel offers a global payroll solution which it says helps businesses hire anyone, anywhere. Using a tech enabled self-serve process, the company boasts that its users can now hire independent contractors or full time employees in over 150 countries, compliantly and in minutes.
Bouaziz and Wang met when they were both students at MIT.
Deel’s big service is SWIFT (Society for Worldwide Interbank Financial Telecommunication) – a messaging system that runs on a network of financial institutions. It is used by thousands of banks worldwide to communicate information on financial transactions in a secure and standardized way.
When Deel first hit unicorn status, the company said in a blog post, “It’s such a special moment for us because we did it entirely remotely with a wild bunch of talented people from 30 different countries. That’s right, the global payroll solution built to help businesses hire anyone anywhere (and uses the product themselves) did it all while looking good on Zoom.”
“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.”
