Deel has completed its $AU121m acquisition of APAC-based payroll and HCM company PayGroup Limited. PayGroup, a private San Francisco-based payroll company, and has been delisted from the Australian Stock Exchange. Initiated in July 2022, the deal completion makes Deel a true leader in the payroll and human capital management (HCM) space. It furthers Deel’s mission of helping millions of people work for the best companies in the world.
What does PayGroup bring to Deel’s portfolio?
PayGroup has a strong presence in ANZ, India, Philippines, Singapore, Malaysia and Japan, processing $AU12bn in payroll per year for over 3,000 businesses. PayGroup has been steadily growing, targeting an annual recurring revenue of $AU39m, and is EBITDA positive.
Its unique positioning in APAC has allowed the company to develop strong partnerships with some of the best global payroll companies in the world to power their platforms. Acquiring PayGroup means Deel has an even more powerful multichannel strategy for implementing its platform and technology – both directly and indirectly – to customers and partners.
What does the acquisition mean for Deel?
Deel co-founder and CFO Philippe Bouaziz says of the acquisition: “Together, we are building the first truly global solution in the payroll and HCM industry, giving businesses around the world the ability to hire, pay, and manage the best talent, no matter where they’re located.”
“The completion of the acquisition scales our payroll and HCM expertise, expands our customer base in the region, and reinforces our leadership in the global payroll space.”
Deel and PayGroup have been actively working on their integration, and with payroll coverage in 90+ countries, Deel and PayGroup now offer an unmatched solution on the market. They expect to announce a new merged version of their software solution in H1 2023, which will combine PayGroup’s 15+ years of expertise delivering HR and payroll software solutions with Deel’s simple, customer-centric platform. All of PayGroup’s team members have joined Deel.