San Francisco-based payroll company Deel has completed its $AU 121M acquisition of APAC-based payroll and HCM company PayGroup Limited. PayGroup has now been delisted from the Australian Stock Exchange.

Commenting on the acquisition, Deel’s co-founder and CFO Philippe Bouaziz said, “Together, we are building the first truly global solution in the payroll and HCM industry, giving businesses around the world the ability to hire, pay, and manage the best talent, no matter where they’re located. The completion of the acquisition scales our payroll and HCM expertise, expands our customer base in the region, and reinforces our leadership in the global payroll space.”

Initiated in July 2022, the acquisition has positioned Deel as the market leader in the global payroll and human capital management space.

Both companies are also expected to announce a new merged version of their software solution in H1 2023, which will combine PayGroup’s 15+ years of expertise in delivering HR and payroll software solutions with Deel’s simple, customer-centric platform. 

PayGroup is known for its noted presence in countries like Australia, New Zealand, India, Philippines, Singapore, Malaysia and Japan, processing roughly $AU 12 billion in payroll per year for over 3,000 businesses. The company has been steadily growing this year, targeting annual recurring revenue of $AU 39 million, and is EBITDA positive.