Deel has entered into a public offer to acquire Australian-based payroll company PayGroup to enable the creation of a global payroll platform.
PayGroup has close to 400 team members across Asia who will be joining Deel. The deal approval process will take about three months to complete.
PayGroup processes roughly $11 billion in payroll per year for over 2,800 businesses.
According to Deel, PayGroup’s payroll and human capital management (HCM) expertise, combined with an enterprise client base spanning the corporate, workforce management, and retail sectors, will extend Deel’s payroll and compliance capabilities to more industries and customers across APAC in particular.
To meet the demands of an increasingly distributed and remote workforce, Deel is working on a payroll offering that lets businesses consolidate their local entity payroll solutions into one easy-to-use dashboard for both contractors and employees.
Philippe Bouaziz, CFO at Deel said, “Together we will build the first truly global solution in the payroll industry, giving businesses around the world the ability to hire, pay, and manage the best talent, no matter where they’re located.
“PayGroup’s strong presence in countries like Australia, India, Singapore, and Japan will expand our customer base and reinforce our leadership in the global payroll space.”
Mark Samlal, managing director of PayGroup said, "We are delighted by this proposed transaction with Deel. The value offered is a testament to the strength of the PayGroup business we have grown over the last four years since listing on the ASX in 2018. We have built a high-quality business with strong, recurring revenues from blue-chip customers across Asia Pacific and beyond.
"We are immensely proud of the achievements of the PayGroup team and we look forward to continuing to build this together as part of Deel, one of the world's fastest-growing and leading global compliance and payroll solution companies."
Founded in 2019, Deel claims it enables companies to compliantly hire independent contractors and full-time employees in over 150 markets, in minutes.
Deel said it makes remote work accessible to all companies, helping businesses easily enter new markets, hire talent wherever they are, at the same time managing teams, contractors, and payroll in multiple markets – all in one centralised platform.
Australian customers include SafetyCulture, Linktree, Quantium, Lexer, Zoomo and Lyre’s.
Deel is valued at US$5.5 billion at its Series D fundraise and it hit the US$100m ARR milestone in April this year.