US-based HR company Deel acquires Australia's PayGroup for $80m

US-based HR company Deel acquires Australia's PayGroup for $80m

photo by Scott Graham on unsplash

US-headquartered human resources platform Deel has acquired Australian payroll and human capital management company PayGroup for AU$121 million ($80 million), the company announced in a statement on Monday.

With this, PayGroup has become part of Deel and has delisted from the Australian Stock Exchange.

The company, which has a strong presence in Australia, New Zealand, India, the Philippines, Singapore, Malaysia, and Japan, processes some AU$12 billion in payrolls annually for over 3,000 businesses.

PayGroup’s systems and software solutions are used by enterprise clients spanning across staffing and workforce management to retail and franchisees such as Nike and Subway.

It now has its sights on achieving an annual recurring revenue of AU$39 million, having turned EBITDA (earnings before interest, depreciation and ammortisation) positive.

Meanwhile, Deel helps companies hire, manage, and pay independent workers and full-time workers in over 150 countries through its global payroll and compliance platform.

Talks on the acquisition kicked off in July, with Deel looking to take over PayGroup to have an even more powerful multichannel strategy to implement its platform and technology – both directly and indirectly – to customers and partners.

The two companies have been working on their integration, given that their combined payroll coverage spans over 90 countries. They expect to announce a new merged version of their software solution in the first half of 2023, which will combine PayGroup’s years of expertise delivering HR and payroll software solutions with Deel’s simple, customer-centric platform.

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