[US] Is Paychex in advanced talks to acquire Paycor?

Paychex is in advanced talks to acquire its smaller payroll processing rival Paycor HCM, according to sources with knowledge of the matter, BNN Bloomberg reports.

A deal could potentially be announced later this week, sources told Bloomberg. 

The sources reportedly asked not to be identified since details aren’t yet public, nothing has been finalised and talks could still fall through. 

Representatives for Paychex and Paycor didn’t respond to Bloomberg BNN’s Sunday request for comment; made outside regular business hours.

The deal would unite two major HR software and services market players. The ordinarily fragmented market has reportedly seen recent consolidation. 

Business growth through deals allows companies to cut costs when bundling more payroll management services to customers. Such expansion can also help with the burden of tasks such as administering benefits and onboarding new workers.

ADP - the sector’s leading payroll services provider - agreed in October 2024 to acquire WorkForce Software, which helps companies manage bespoke compensation needs. 

Paycor’s cloud-based software helps SMEs to automate and streamline their human capital and payroll needs. According to the company website, it is currently used by more than 30,000 customers across all 50 US states. 

The potential acquisition would reportedly be the largest deal from New York-based Paychex, which offers HR, employee benefits, insurance and payroll services to more than 745,000 customers in Europe and the US. 

Source: BNN Bloomberg

Paychex is in advanced talks to acquire its smaller payroll processing rival Paycor HCM, according to sources with knowledge of the matter, BNN Bloomberg reports.

A deal could potentially be announced later this week, sources told Bloomberg. 

The sources reportedly asked not to be identified since details aren’t yet public, nothing has been finalised and talks could still fall through. 

Representatives for Paychex and Paycor didn’t respond to Bloomberg BNN’s Sunday request for comment; made outside regular business hours.

The deal would unite two major HR software and services market players. The ordinarily fragmented market has reportedly seen recent consolidation. 

Business growth through deals allows companies to cut costs when bundling more payroll management services to customers. Such expansion can also help with the burden of tasks such as administering benefits and onboarding new workers.

ADP - the sector’s leading payroll services provider - agreed in October 2024 to acquire WorkForce Software, which helps companies manage bespoke compensation needs. 

Paycor’s cloud-based software helps SMEs to automate and streamline their human capital and payroll needs. According to the company website, it is currently used by more than 30,000 customers across all 50 US states. 

The potential acquisition would reportedly be the largest deal from New York-based Paychex, which offers HR, employee benefits, insurance and payroll services to more than 745,000 customers in Europe and the US. 

Source: BNN Bloomberg