Norwood-based Paycor is set to be bought by Rochester, N.Y.-based Paychex for $22.50 per share. The all-cash transaction is valued at approximately $4.1 billion.
The companies announced the deal Jan. 7, noting the definitive agreement has been unanimously approved by both companies' boards of directors. The deal is expected to close in the first half of 2025.
"We believe this transaction will create a great outcome for our clients and key stakeholders, and we are very excited to be joining Paychex for the next phase of our journey," said Raul Villar, Jr., CEO of Paycor in a statement. "We are confident that our customers will benefit from the shared expertise, resources, and innovative HCM [human capital management] solutions of both companies to drive even greater people and business performance."
Paycor employs around 2,900 — including about 1,500 locally — with 49,000 clients. It is the region's 16th largest public company by revenue, according to the Cincinnati Business Courier. Paychex serves more than 745,000 customers with a staff of more than 16,000, per a release.
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Paychex CEO John Gibson says the deal is complementary to both businesses.
"Where Paychex is strong, we can help Paycor; and where Paycor is strong, they can help Paychex," he said during a call Tuesday morning. "I think overall, across every market segment, we see revenue increase opportunities in the client base for both companies."
Both call the move a "growth play." Gibson added the timing was right for Paychex to make this move.
"We've been thinking and watching Paycor for some period of time. [We've] been very impressed with what Raul and his team have done in positioning their products," he said. "It was time for us to pull the trigger and we did."
Paycor is in the process of relocating its headquarters from Norwood to the former Saks building in downtown Cincinnati. It's unclear how the acquisition could affect Paycor's stadium naming rights deal with the Cincinnati Bengals.
