Paychex Acquires Paycor in $4.1 Billion Deal
Human capital management (HCM) firm Paychex has announced its acquisition of Paycor HCM, a software company providing HCM, payroll and talent services.
The acquisition will help the company offer “the most comprehensive HCM portfolio in the industry, enabling Paychex to better meet the needs of new and existing customers across all market segments,” the companies said in a Monday (April 14) news release.
“This transaction strengthens our competitive position upmarket, unlocks new revenue opportunities, and positions us for sustainable long-term growth,” Paychex President and CEO John Gibson said in a statement.
“Our integration strategy will prioritize accelerating sales expansion and product innovation to drive our growth,” Gibson added.
The acquisition was completed in an all-cash transaction of 100% of Paycor for $22.50 per share, setting a $4.1 billion value on the deal.
This news comes several months after Paychex debuted a working capital solution for small to medium-sized businesses (SMBs).
As PYMNTS reported in November, Paychex unveiled Paychex Funding Solutions, an offering that aims to provide SMBs with capital on an as-needed basis.
The feature provides up-front capital based on a business’s assets through invoice factoring and is a solution for payroll, vendor payments and growth reinvestment. According to the report, it is available to any business-to-business organization, even non-Paychex payroll clients.
The company said the working capital solution offers more flexibility than traditional bank loans, with funding decisions based partly on a business’ customers’ creditworthiness, enabling Paychex to serve organizations that might not qualify for standard loans.
In August, Paychex also unveiled an employee benefits marketplace that includes features like earned wage access, financial wellness solutions and voluntary lifestyle benefits for the employees of Paychex clients, PYMNTS reported at the time.
The marketplace is integrated into Paychex Flex, the company’s cloud-based software-as-a-service solution. Through the program, employees can select their own benefits based on their needs, giving business owners and human resources leaders more time to focus on “more strategic initiatives that come with running a business,” Paychex said.
“Based on our continuous monitoring of workplace challenges and customer needs, we see firsthand that many companies struggle to compete for talent in today’s labor market due to lack of employee benefits beyond traditional healthcare,” Tom Hammond, Paychex vice president of strategy, partnerships and business development said at the time.
The post Paychex Acquires Paycor in $4.1 Billion Deal appeared first on PYMNTS.com.