Deel has completed its $AU 121M acquisition of APAC-based payroll and HCM company PayGroup Limited. PayGroup is now part of Deel, a private San Francisco-based payroll company, and has been delisted from the Australian Stock Exchange.
Initiated in July 2022, the acquisition’s completion makes Deel a true leader in the global 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.
PayGroup has a strong presence in countries like Australia, New Zealand, India, Philippines, Singapore, Malaysia and Japan, processing roughly $AU 12 billion in payroll per year for over 3,000 businesses. The company has been steadily growing this year, targeting an annual recurring revenue of $AU 39 million, and is EBITDA positive.
PayGroup’s HCM and in-house payroll software provide solutions for enterprise clients spanning many industries, from staffing and workforce management companies, to retail and franchise clients like Nike and Subway. 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.
Deel and PayGroup have been actively working on their integration, and today, 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.
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.”