Paychex Set to Acquire Paycor in $4.1 Billion Deal

ROCHESTER, N.Y. – Leading human capital management company Paychex, Inc. (NASDAQ:PAYX) announced that it has signed a definitive agreement to acquire Paycor (NASDAQ:PYCR) HCM, Inc., a significant provider of HR, payroll, and talent software, for approximately $4.1 billion in an all-cash transaction.
The purchase price of $22.50 per share represents a 19% premium over Paycor's recent average trading price.
The transaction, which has been approved by the boards of directors of both companies, is expected to close in the first half of calendar year 2025, subject to regulatory approvals and customary closing conditions. Paychex anticipates that the acquisition will have a neutral to slightly accretive effect on adjusted diluted earnings per share in the first fiscal year following the closing, and accretive thereafter.
Based in Cincinnati, Ohio, Paycor serves over 49,000 clients across the U.S. and supports approximately 2.7 million employees. Since its IPO in 2021, the company has demonstrated growth in its upper market segment through investments in data, artificial intelligence, and other advanced technologies.
Paychex President and CEO John Gibson expressed enthusiasm for the acquisition, emphasizing the complementary nature of Paycor's services to Paychex's existing offerings. The merger aims to enhance Paychex's capabilities in the upper market segment and expand its artificial intelligence-enabled HR technology capacity.
Paycor CEO Raul Villar, Jr. commented on the transaction, stating that joining Paychex marks an exciting next phase for Paycor, with expected benefits for customers and stakeholders from the combined expertise and resources of both companies.
The acquisition is expected to create one of the most comprehensive HR portfolios in the industry and aims to better meet customer needs across all segments. Paychex anticipates achieving over $80 million in cost synergies in the short term, with significant revenue synergies expected in the coming years.
Paychex has secured committed financing for the transaction, which will be funded with this additional borrowing. The company remains committed to maintaining its dividend policy and strong balance sheet protection.