[US] Paychex will buy Paycor in $4.1 billion deal

On January 7, Paychex confirmed that it would acquire payroll processing firm Paycor HCM for around $4.1 billion cash, Reuters reports.

The acquisition is part of the HR management firm's moves to broaden its AI capabilities and consolidate its market share.

Paychex will reportedly pay $22.50 for each Paycor share, representing about a 21.4 per cent premium to the stock's closing price on January 3, before news of the acquisition broke.

John Gibson - Paychex CEO - said, "The acquisition of Paycor is highly complementary. It will enhance our capabilities upmarket, broaden our suite of AI-driven HR technology capabilities, and provide new channels for sustained long-term growth.

"The deal should provide a boost to both public and private firms in the human-resources software and services market."

Paycor reportedly had a market value of $3.3 billion at the January 3 close of trading. The company serves nearly 50,000 small and medium-sized businesses across the US, and provides cloud-based payroll software which can automate routine tasks and mitigate compliance risks.

The deal is expected to close in the first half of 2025. It has been approved by both companies together with private equity firm Apax Partners and its affiliates. Apax currently owns the majority of Paycor's outstanding shares.

Source: Reuters

(Quotes via original reporting)

On January 7, Paychex confirmed that it would acquire payroll processing firm Paycor HCM for around $4.1 billion cash, Reuters reports.

The acquisition is part of the HR management firm's moves to broaden its AI capabilities and consolidate its market share.

Paychex will reportedly pay $22.50 for each Paycor share, representing about a 21.4 per cent premium to the stock's closing price on January 3, before news of the acquisition broke.

John Gibson - Paychex CEO - said, "The acquisition of Paycor is highly complementary. It will enhance our capabilities upmarket, broaden our suite of AI-driven HR technology capabilities, and provide new channels for sustained long-term growth.

"The deal should provide a boost to both public and private firms in the human-resources software and services market."

Paycor reportedly had a market value of $3.3 billion at the January 3 close of trading. The company serves nearly 50,000 small and medium-sized businesses across the US, and provides cloud-based payroll software which can automate routine tasks and mitigate compliance risks.

The deal is expected to close in the first half of 2025. It has been approved by both companies together with private equity firm Apax Partners and its affiliates. Apax currently owns the majority of Paycor's outstanding shares.

Source: Reuters

(Quotes via original reporting)