Deel Continues Acquisition Spree with PaySpace Takeover

Deel Continues Acquisition Spree with PaySpace Takeover

By Staff Writer, 07 March 2024

Deel, the rapidly expanding HR startup, is making significant moves in the acquisition arena.

Their latest announcement, unveiled on Tuesday, reveals the acquisition of PaySpace, a prominent African-based payroll and HR software and services company.

This deal stands as Deel's most substantial acquisition to date.

This strategic move follows closely on the heels of another recent acquisition by Deel.

Just last week, the company added Munich-based Zavvy to its portfolio.

Zavvy specializes in AI-based solutions for personalized career development, training, and performance management.

While financial details of the PaySpace acquisition were not disclosed, the significance of this move is undeniable.

PaySpace boasts a robust clientele of over 14,000 customers across 44 countries, spanning Europe, Latin America, the Middle East, and Africa.

Among its impressive roster of clients are industry giants like Heineken, Coca-Cola Beverages, and Puma Sports SA.

For Deel, valued at $12 billion and operating in more than 70 countries, the acquisition of PaySpace presents a strategic opportunity to deepen its presence in the African market.

Despite its success, PaySpace doesn't conform to the traditional venture-backed startup model.

Founded in 2007 by brothers Bruce, Clyde, and Warren Clark, along with George Karageorgiades, the company has achieved remarkable success through bootstrapping.

Initially established as a cloud-based platform to streamline payroll and HR processes, PaySpace has evolved into a trusted solution for businesses seeking efficiency and reliability in managing their workforce.

Source: Mary Ann Azevedo, Tage Kene-Okafor / TechCrunch

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