Payroll and HR provider Gusto announced it is acquiring Remote Team, a startup that focuses on supporting far-flung staff.
As part of its announcement, Gusto said it supports paying contractors in 80 countries and quick tax registration in all 50 U.S. states.
Remote Team, unlike Gusto, is an early-stage startup. In the view of Gusto CEO Josh Reeves, Remote Team was at around the Series A stage of startup life. Putting fundraising trends aside, that means the smaller firm likely had customers and a go-to-market motion that was hitting its stride.
In contrast, Gusto has raised nearly $700 million in capital, according to Crunchbase data, most recently adding $175 million to reach a valuation of around $9.5 billion.
Gusto offers Remote Team scale. Remote Team CEO and founder Sahin Boydas said selling his company to Gusto made sense because it could offer more reach into the global corporate footprint than raising more private funds.
Boydas indicated support for more countries is coming, implying that Gusto’s ability to support international hires will grow in the coming quarters.
Terms of the transactions were not disclosed, but Gusto’s CEO did indicate that equity was a component.
