Paychex Finalizes $4.1 Billion Acquisition of Paycor

Deal News | Apr 21, 2025 | EIN

Paychex Finalizes $4.1 Billion Acquisition of Paycor

Paychex, a major employer in the Rochester area, has finalized the acquisition of Paycor, a Cincinnati-based rival, for $4.1 billion. Paychex is significantly larger, boasting 16,500 employees and $5.3 billion in revenue projected for 2024, compared to Paycor's 2,900 workers and $655 million revenue reported for its last fiscal year. Post-acquisition, Paycor's former CEO Raul Villar will act as a special advisor to ensure a seamless transition, while senior executives Adam Ante and Ryan Bergstrom take leadership roles within Paychex. Cost synergies expected from the merger exceed $80 million, suggesting potential cost-cutting measures. Despite the transition, Paycor's primary base will remain in Cincinnati, reflecting Paychex’s commitment to expand its operations in the city and engage with local initiatives for community development.

Sectors

  • Human Resources and Payroll Services
  • Mergers and Acquisitions

Geography

  • United States – The acquisition involves two U.S.-based companies, Paychex based in Rochester, New York, and Paycor in Cincinnati, Ohio, reflecting the geographical importance of the location in business expansions.
  • Cincinnati, Ohio – The article specifically outlines the strategic significance of Cincinnati as Paycor's primary location and a new strategic hub for Paychex.
  • Rochester, New York – Rochester is highlighted as the home base of Paychex, and its expansion influences this region’s business landscape.

Industry

  • Human Resources and Payroll Services – Both Paychex and Paycor operate in the HR and payroll management sector, providing essential services for businesses in managing their personnel and financial obligations.
  • Mergers and Acquisitions – The article details a significant acquisition transaction, where Paychex purchases Paycor, a move indicative of M&A activities in the industry.

Financials

  • $4.1 billion – The acquisition price agreed upon by Paychex to purchase Paycor.
  • $80 million – The projected cost synergies Paychex expects to achieve in the near term following the merger.
  • $24.4 million – The golden parachute severance package entitled to Raul Villar, former CEO of Paycor.
  • $5.3 billion – The projected revenue for Paychex in 2024.
  • $655 million – The revenue reported by Paycor for its last fiscal year.

Participants

NameRoleTypeDescription
PaychexBidding CompanyCompanyA Rochester-based company acquiring Paycor, looking to enhance its footprint and merger synergies.
PaycorTarget CompanyCompanyA Cincinnati-based company being acquired by Paychex, offering payroll and personnel management services.
Raul VillarFormer CEO of PaycorPersonFormer CEO of Paycor who will serve as a special advisor post-acquisition.
John GibsonCEO of PaychexPersonCEO of Paychex overseeing the integration of Paycor into the company.
Adam AnteSenior Vice President at PaychexPersonFormer Paycor CFO taking on a senior role at Paychex post-acquisition.
Ryan BergstromChief Product Officer at PaychexPersonFormer Chief Product and Technology Officer at Paycor, now serving as CPO at Paychex.