Mar 5, 2024 - Business

Payroll "unicorn" Deel buys PaySpace for over $100 million

illustration of a calculator with dollar signs on it

Illustration: Aïda Amer/Axios

Deel, a San Francisco-based payroll and HR platform valued by VCs at over $12 billion, agreed to buy South Africa-based rival PaySpace.

Why it matters: This reflects a dizzying amount of consolidation within the payroll sector, in which large providers are seeking to quickly add both services and geographies.

Details: No financial terms were disclosed, although sources put the price-tag at above $100 million.

  • PaySpace, which was bootstrapped more than a decade before last year raising money from Netcash, claims to have 14,000 customers in 44 countries.

The bottom line: Deel also today announced that it's hit $500 million in ARR, on top of being profitable with around $600 million in the bank. But don't expect an IPO in 2024, as it is expected to follow the stay-private path of fellow fintech unicorns Stripe and Plaid.

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