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In the world of payroll and HCM software this week, a new partnership of heavyweights was announced. Paychex, a leading payroll and HCM software company, moved to acquire Cincinnati-based rival, Paycor, for $4.1 billion.
The deal, announced Tuesday, bolsters two major providers of payroll and HCM solutions on the market. Paychex, a leader in payroll solutions for small and medium businesses, provides pay checks for one in 12 Americans in the private sector. Paycor solutions are utilized by larger enterprise clients upmarket and in recent years has worked to expand its offerings beyond payroll and finance services for HR teams, features making it alluring for an acquisition.
Paychex’s CEO and president, John Gibson Jr., called the move “a significant milestone in our journey to provide best-in-class HCM solutions to businesses of all sizes” on LinkedIn.
“The synergies between our companies and complementary solutions we offer position us for long-term growth and deepens our commitment to helping businesses succeed. I can’t wait for this journey to begin and officially welcome the Paycor team on board,” he posted.
The sale will bring Paycor’s more than 49,000 clients servicing more than 2.7 million employees across the US to Paychex, a leader in the small- to medium-sized enterprise HCM market.
Together execs boast the sale will position the company as the “most comprehensive HCM portfolio in the industry, allowing Paychex to better meet the needs of new and existing customers across all customer segments” and the cross-sale of features from either provider.
“We are confident that our customers will benefit from the shared expertise, resources, and innovative HCM solutions of both companies to drive even greater people and business performance,” said Paycor CEO Raul Villar Jr. in a news release announcing the sale.