Paychex, Inc. (PAYX) entered a merger agreement on January 7, 2025, to acquire Paycor HCM, Inc. (PYCR) in an all-cash deal valued at $4.1 billion.
As per the terms of the agreement, Paychex will acquire all the outstanding shares of Paycor at $22.50 per share in cash, representing a 1.57% discount over the stock’s last close.
Paycor is a provider of cloud-based human capital management solutions, offering small and medium-sized businesses tools for HR, payroll, talent management, and employee engagement to drive operational efficiency and business growth.
Paychex is an industry-leading provider of integrated human capital management solutions, offering payroll, HR, benefits, insurance, and compliance services to small and medium-sized businesses across the U.S., Europe, and India.
The merger between Paychex and Paycor, expected to close in the first half of 2025, is projected to yield over $80 million in short-term cost savings, with significant revenue growth opportunities anticipated in the years ahead.
Bloomberg reported two days ago that Paychex is in advanced discussions to acquire Paycor. Following the news, Paycor’s shares surged 23%, rising from $18.54 per share.
Paychex is acquiring Paycor for 6 times its sales.
To delve into the finer details of this acquisition, please follow the link to the Deal Metrics page:
Deal Metrics for the acquisition of Paycor HCM, Inc. (PYCR) by Paychex, Inc. (PAYX)
The Deal Metrics page for each merger or acquisition includes:
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Editor’s Note: Baranjot Kaur contributed to this article