In March 2024, US-headquartered HR solution provider Deel, which started out as an Employer of Record (EOR), announced the acquisition of a prominent Africa-based payroll and HR software and services company, PaySpace. The acquisition holds significant market implications: it signals a shift in EOR providers’ ambitions to develop global payroll capabilities and could spur similar M&As in the market. Additionally, we anticipate that the acquisition will propel Deel closer to its goal of creating a full-suite HR platform that addresses employees' payroll, HR, performance, and compliance needs.
In this report, we analyze the acquisition’s background and context and its benefits for Deel and PaySpace. We also explore its implications for the EOR and Multi-country Payroll (MCP) markets, including a rise in investments in global employment platforms and intensification of competition in the market.
