Paychex has made a big acquisition. In fact, CEO Marty Mucci says it’s the largest acquisition in the company’s history.
The Rochester-based firm is buying Oasis, a Florida-headquartered company which is the largest privately owned company of its type. The purchase price is $1.2 billion, which will be financed through cash and taking on some long-term debt.
Mucci says that Oasis, like Paychex, also provides outsourcing services.
“The HR outsourcing business for Paychex is our fastest growing business; it’s been growing double digits for the last few years and Oasis Outsourcing is the largest private PEO (professional employer organization) or HR outsourcing business and combining ourselves will make us one of the largest in this industry right now,” Mucci told WXXI News.
Oasis has about 1,100 employees. Paychex has around 14,000 employees worldwide, with about 4,700 of them based in Rochester.
Mucci says the acquisition could eventually lead to some local job growth.
“Most of the employees for Paychex in this business are out and around the country and outside of Rochester but we do think that there will probably be some additional jobs in Rochester as a result of this acquisition for corporate support roles and so forth.”
The president and CEO for Oasis, Mark Perlberg, says the combined company will have enhanced capacity to develop and deliver critical human resources and payroll solutions. With regulatory approvals still needed, it’s expected to take about a month or so for the deal to be completed.
Paychex stock on Monday rose 1.71%, rising $1.15 to close at $68.41 a share.
