- Fast-growing payroll provider Deel is making a sizable acquisition, its third this year.
- This acquisition expands Deel’s capabilities and market engagement, providing a solid foundation for future products and services.
OUR TAKE
Deel’s primary business is processing international payroll and employing employees on behalf of the organisation through one of its local entities. The company also assists in developing contracts that comply with local labor laws, helps workers get health insurance and provides immigration advice on the visa process.
–Zora Lin, BTW reporter
What happened
Deel announces on Thursday that it acquires Hofy, a London-based company that provides and helps manage office equipment for remote workers. Financial terms are not disclosed, but a person familiar with the matter put the value of the deal at more than $100 million.
“Later this year, we will launch Deel IT, which will include software provisioning, application access management, integration with mobile device management and identity tools, and lifecycle management for deploying, collecting, servicing and replacing devices,” says Deel co-founder and CEO Alex Bouazizi.
Deel IT will provide customers with a complete It stack, enabling Deep to become a one-stop HR services provider and expand its business globally.
Hofy’s two co-founders, Sammy Brumum and Michael Kinzo, along with the rest of the startup’s leadership team and 120 employees, will join Deel to build Deel IT. Bouaziz said Deel will work with Hofy’s existing customers to migrate them to the Deel platform.
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Why it’s important
For Deel, which is currently valued at more than $12 billion and has raised $630 million, the acquisition of Hofy is another step in its quest to dominate the payroll management market. The acquisition expands Deel’s capabilities and market engagement and provides a solid foundation for its future products and services.
The acquisition brings together Hofy’s 120 employees and leadership team, resources that will help Deel expand its remote working and IT services business globally, increase market share and serve a broader customer base.
Deel’s acquisition of Hofy marks Deel’s strategic expansion into remote working and office equipment management. Hofy’s focus on office equipment management services for remote employees complements Deel’s current human resources services and remote work support services.
