Berlin/Tel Aviv, August 3, 2021.
Dear Zeitgold Team,
Today is a BIG moment in Zeitgold’s story. It is the beginning of our next chapter to continue to help shape and shatter hiring borders worldwide.
Deel, the top international payroll and compliance unicorn, has announced that it joined forces with Zeitgold to fuel global growth and enhance the depth and breadth of its product offerings. We are incredibly excited about the potential this deal has for both companies and cannot wait to deliver considerable benefits to our users along with Deel’s fast-growing user base.
Before diving in further, we would like to thank all of you for your endless passion and effort to help build Zeitgold. We couldn’t have wished for a better team to go on this journey with!
Deel is the market leader in the global payroll and compliance space. The company allows businesses to hire anyone, anywhere, compliantly. Plus, onboarding international employees or contractors takes under 5 minutes, with no local entity required, and paying them in 120+ currencies takes just a click.
In April 2021, Deel raised an impressive $156 million in Series C funding (with leading investors being A16Z, Spark, and Y-Combinator Growth) at a $1.25 billion valuation. Deel also announced plans to continue international expansion, grow its team through mergers & acquisitions, and continue to hire exceptional talent across the globe to improve, build, and expand its product offerings. The acquisition of Zeitgold marks the first step in the company’s ambitious M&A plans.
With our AI-powered payroll and automated bookkeeping software we have been empowering businesses and freelancers for multiple years. Our freelancer product Sorted is growing rapidly and helps thousands of independent contractors with their setup, bookkeeping and tax filing as well as connecting them to best-in-class tax advisors. With the acquisition of Zeitgold, Deel is gaining the expertise of our team in global payroll, automation, and AI. The deal also provides them with valuable IP in global payroll processing based on a powerful workflow engine and document understanding AI stack, which Deel will leverage to scale up and serve hundreds of thousands of clients. Together this is a game-changer when it comes to Deel’s ability to scale faster and better serve hundreds of thousands of clients. It will also help fulfill our new mission to become the default solution for easy and compliant hiring for everyone, no matter their location. We wholeheartedly believe joining forces with Deel allows us to leverage our core automation technology and product lines globally. These new capabilities we bring to Deel will help enable contractors worldwide to stay compliant, file taxes with confidence, and reduce hiring barriers even more drastically.
What this means for the Zeitgold team members
We will integrate the entire Zeitgold team (locations and functions) into the Deel organization, with all offices remaining open as usual. Since Deel is growing very fast on both the customer and team fronts, there are ample opportunities for growth and impact within the new organization.
All employees will receive an attractive retention offer which will help them feel like an integral part of Deel’s future success.
What this means for all of our customers
As always, we will continue to support existing customers fully. Our freelance customers using Sorted will soon enjoy many new benefits and features that come with using the Deel platform. Imagine being able to freelance in any country in minutes and getting paid easily and compliantly? Well, it’s now possible.
Each of our tax advisor customers will be approached directly over the next few days to learn more about Deel’s partnership program, which will provide numerous potential business opportunities.
How we arrived at this decision
We felt a natural connection on both product mission and cultural fronts from the moment we met Deel’s leadership team. It quickly became apparent to both parties that the potential of joining forces meant making a deal happen sooner than later. While we experienced strong M&A interest from other parties, the hyper-growth of Deel seemed like the best opportunity for us as a team to take what we’ve built to a global level.
A few personal words
While making this decision, we have carefully considered the best way forward for all Zeitgold stakeholders, and we firmly believe it’s the right choice for all of us. We are very excited to join Deel and look forward to the potential it has to offer.
We’ve been together through good times, tough times, and we’ve celebrated together at our Chrismukkah (Christmas and Hanukkah holidays) parties, worked on weekends and hackathons. We are incredibly grateful to have the opportunity to now share and cherish this special moment together.
As always, we will continue to be open and transparent over the coming weeks as we continue to write Zeitgold’s next chapter. We’re fully committed to supporting you in this transition and look forward to making it a huge success.
Kobi, Jan & Stefan