Deel Inc., a global employer-of-record platform headquartered in the US, acquired PaySpace, a payroll and human resource services provider operating in Europe, Latin America, the Middle East and Africa.

With the acquisition, Deel said it is the first global payroll and employer-of-record provider with its own full-stack payroll engine in 50 countries.

“PaySpace’s single-platform payroll expertise and breadth of coverage, particularly in Africa and the Middle East, combined with PayGroup’s presence in APAC, will give Deel customers the reach they need to grow their businesses globally,” Alex Bouaziz, co-founder and CEO of Deel, said in a press statement.

PaySpace has more than 14,000 customers, including multinationals such as Heineken, Coca-Cola and Puma Sports. PaySpace’s offices are in Mauritius and South Africa with headquarters in the Gauteng province in South Africa.

“With our cloud-native proprietary technology, PaySpace can assume the role of an exclusive calculation engine for Deel in the global market,” according to a blog post by PaySpace. “It is this power that Deel recognised, and it will propel them to be the first EOR with their own multi-country global payroll calculation engine.”

Deel is also an existing PaySpace customer in 10 African countries and a beta customer in Brazil and the UK, according to the post.

“Our collective experience to date has shown great potential for future growth, and this acquisition sets the stage for fast-tracked country localization through additional compliance by Deel and tech & build by PaySpace,” the post said.

Plans call for PaySpace to remain as a standalone business and become a subsidiary of Deel.

“Deel was founded as a global-first work solution, and our payroll ambitions are no different,” Bouaziz said in a post. “Our global payroll product for enterprise customers is our fastest-growing offering, and our acquisition of PaySpace means we now own the full HR stack: entities in more than 100 countries, local teams (legal, HR, payroll), and local payroll engines in 50+ countries across six continents.”

“Our ambition is to serve 100 countries on the same native, global payroll engine within the next four years,” Bouaziz added.

The deal follows Deel’s acquisition of Zavvy, a Munich, Germany-based AI-powered people-enablement platform, in February.

SIA has reached out for more information.

Deel also announced that it has achieved $500 million in annual recurring revenue organically outside of the PaySpace acquisition. It has more than 3,000 team members in more than 100 countries.