Paychex Looks Upmarket with Paycor Acquisition

The Wire: Paycor’s strength upmarket will complement Paychex’s position upmarket, the companies said, and significantly expand its sales coverage.

Paychex agreed to acquire Paycor HCM, another provider of HCM, payroll and talent software, in an all-cash transaction for $22.50 per share. That puts the enterprise value at some $4.1 billion.

Paycor has approximately 2,900 employees, serves over 49,000 clients, and supports approximately 2.7 million workers across the U.S. The company’s platform was designed to serve organizations of all sizes, and has expanded its upmarket position since going public in 2021.

Paychex President and CEO John Gibson described the deal as “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,” he said. Paycor CEO Raul Villar, Jr., said he’s confident “our customers will benefit from the shared expertise, resources and innovative HCM solutions of both companies.”