Deel acquires Hofy to enhance global HR & IT integration

Deel, a global HR and payroll company, has announced its acquisition of Hofy, a London-based startup specialising in device supply and management. Hofy, founded in 2020, serves 25,000 users and over 700 customers. The company can send company devices such as phones and laptops to more than 127 countries globally within just a few days and manage the entire lifecycle of these devices.

Deel is a global HR and payroll company that provides solutions to manage remote teams and streamline global workforce operations. With a focus on simplifying international employment, Deel offers services that cover payroll, compliance, and employee benefits across various countries. The company supports a diverse range of businesses by delivering tools that facilitate hiring, onboarding, and managing remote employees, all while ensuring compliance with local regulations. Deel's platform is designed to address the complexities of global workforce management, aiming to enhance efficiency and reduce administrative burdens for organisations operating across multiple regions.

Meanwhile, Hofy provides end-to-end solutions for company device procurement, distribution, and lifecycle management. Hofy streamlines the process of equipping remote teams with necessary hardware, ensuring rapid delivery and efficient management. The company’s services are designed to support global organisations by handling device logistics and lifecycle operations, thus addressing a critical aspect of remote workforce management.

With Deel's acquisition of Hofy, the company aims to bridge the operational gap between global HR and IT functions, creating a more seamless and unified experience for remote workers. Deel implements Hofy's service for its fully remote global team, comprising over 4,000 team members spread across more than 100 countries and over 20 time zones. It has been using Hofy's solutions for the past 2.5 years.

Although the acquisition deal closed last week, the full integration is expected to take several months. Deel is preparing to launch a new offering called "Deel IT," an end-to-end IT suite. This suite will include services such as software provisioning, app access management, and integrations with mobile device management (MDM) and identity tools.

Hofy’s integration will add a new business line to Deel's HR and payroll suite, moving the platform closer to being the most comprehensive global infrastructure for employers and their teams. Deel, which achieved annual recurring revenue of USD $500 million earlier this year and has been EBITDA positive since September 2022, will become the first HR and payroll company to offer such a comprehensive in-house IT suite. Currently valued at over USD $12 billion, Deel has raised a total of USD $630 million to further its mission of transforming the future of work.

The acquisition of Hofy marks Deel's third major acquisition this year. Previous acquisitions include Africa's PaySpace and Germany's Zavvy.