Deel is advancing its growth through acquisitions, revealing on Tuesday its purchase of PaySpace, a payroll and HR software company based in Africa. This acquisition, Deel's largest to date, closely follows its acquisition of Zavvy, a Munich-based startup focused on AI-driven career development tools.

While the financial details of the PaySpace purchase were not shared, PaySpace is recognized for serving over 14,000 customers with its software and services in 44 countries, including prominent clients like Heineken and Coca-Cola Beverages. This acquisition allows Deel, a $12 billion HR startup operating in over 70 countries, to expand its presence in Africa.

PaySpace, which received financing from Netcash last year, was founded in 2007 by the Clark brothers and George Karageorgiades as a cloud-based solution to improve payroll and HR processes. The company has since grown to cover 43 countries and plans to expand into Brazil and the UK.

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In addition to announcing the acquisition, Deel disclosed it has surpassed $500 million in annual recurring revenue (ARR), a significant increase from $290 million at the end of the previous year. The company, which has been EBITDA positive since September 2022, is contemplating an IPO around 2025 or 2026, according to CEO Alex Bouaziz.

Deel's acquisition strategy, including its recent purchase of PayGroup, positions it as a comprehensive HR solution provider across six continents. Bouaziz highlighted the technological prowess of PaySpace and the strategic advantage of owning their technology for payroll processing.

The acquisition not only signifies Deel's expansion into Africa and the enterprise sector but also underscores a broader trend of collaboration between Africa-founded companies and global entities, following significant deals involving BioNTech, Medius, and Stripe with African startups.