What’s the deel?

San Francisco-based HR tech unicorn Deel has been on a shopping spree, snapping up startups left and right to bolster its position as a leader in global payroll and workforce management. The $12 billion juggernaut, founded by Alex Bouaziz and Shuo Wang in 2019, has grown at breakneck speed, reaching $500 million in annual recurring revenue in just five years.

Deel’s meteoric rise has been fuelled not only by organic growth but also through strategic acquisitions. The company has been particularly active in the past 18 months, acquiring companies that complement its core offering and expand its geographical reach.

Deel’s Acquisition Strategy: Driving Seamless Global Hiring

“We’re always on the lookout for companies that can help us serve our customers better,” says Alex Bouaziz, CEO and co-founder of Deel. “Our acquisition strategy is focused on bringing in complementary technologies and talented teams that can accelerate our mission of making global hiring seamless.”

Deel’s head of corporate development, Sarah Smith, adds: “We’re not just acquiring companies for the sake of it. Each acquisition is carefully considered in terms of how it fits into our long-term vision and how it can benefit our customers.”

Here’s an updated rundown of Deel’s acquisitions, with the most recent listed first:

The acquisition of Hofy marks a significant milestone for both companies. Founded in 2020 by Sami Bouremoum and Michael Ginzo, Hofy had quickly established itself as a leader in remote work equipment management, serving over 700 businesses including notable names like Forbes, GoDaddy, HelloFresh, and Canva.

The London-based startup had raised more than $30.2 million from investors, including Fred Destin’s Stride.VC, CNP, 20VC, and Day One Ventures. Bouremoum had previously reported that Hofy was cash flow positive, making it an attractive target for Deel. The acquisition, valued at over $100 million, not only brings Hofy’s technology and customer base to Deel but also integrates its 120-strong team, including both co-founders, into Deel’s operations to build out the new Deel IT offering.

During a session at HyperExits inaugural event Fred Destin mentioned Michael and Sami’s strategy to align with Bouaziz and the Deel team and add an entirely new business line to the startup which allows them to grow the top line. To view the whole video and lean more about the transaction please do join the HyperExits community by clicking on the “Join Community” button on the top right of this page.

Bouaziz emphasises that Deel’s acquisition strategy is not just about buying technology, but also about bringing in talented teams. “We’re always excited to welcome new team members who share our vision and can bring fresh perspectives to our company,” he says.

The acquisitions have allowed Deel to rapidly expand its product offerings and geographical reach. For instance, the PayGroup acquisition significantly boosted Deel’s presence in the Asia-Pacific region, while the PaySpace deal strengthened its foothold in Africa and the Middle East.

Smith notes that integration is a key focus post-acquisition. “We work hard to ensure that the acquired companies’ technologies and teams are seamlessly integrated into Deel. This allows us to quickly deliver value to our customers and maintain our rapid growth trajectory.”

As Deel continues to grow, industry observers are keen to see what the company’s next moves will be. With its strong financial position and clear acquisition strategy, it seems likely that Deel will continue to be an active player in the M&A market, further consolidating its position as a global HR tech leader.

For now, as per an interview on Techcrunch, Bouaziz remains focused on the company’s mission. “Our goal is to make it easy for companies to hire anyone, anywhere in the world. Every acquisition we make is a step towards realising that vision.”