Paychex is making a big purchase. The company announced on Tuesday it is acquiring another payroll company, Paycor, in a deal valued at $4.1 billion.
Paycor is based in Cincinnati, Ohio and has around 2,900 employees and 49,000 clients.
Paychex President and CEO John Gibson said the acquisition is complementary and will help Paychex broaden it suite of AI-driven HR technology capabilities and provide new ways to sustain long-term growth.
The companies did announce that they expect the deal to generate more than $80 million of synergies in the near-term.
The deal is expected to close in the first half of this year, subject to regulatory and other approvals.
At Brighton Securities, Chairman George Conboy looks favorably at this acquisition, saying that it will help Paychex grow.
"Over the last 20 years, (Paychex) has been providing human resource services of a variety of sorts, and Paycor helps them broaden their offerings in a very sophisticated way."
