Apax Partners to Divest Majority Stake in Paycor HCM to Paychex in Major Acquisition Deal
On January 7, 2025, Apax Partners LLP revealed its plan to sell a majority stake in Paycor HCM, Inc., a prominent player in human capital management (HCM) software, to Paychex, Inc. The all-cash transaction values the deal at approximately $4.1 billion, with Paycor's shares priced at $22.50 each. This acquisition signifies a strategic move in the evolving landscape of HCM software solutions.
Since acquiring a majority stake in Paycor for $1.3 billion in November 2018, Apax has played a crucial role in driving the company’s growth and transformation. By collaborating closely with Paycor's leadership, Apax has helped expand its operations into key markets across North America, establishing a strong foundation for its modern HCM platform aimed specifically at mid-market businesses. Following this collaborative strategy, Paycor was successfully launched on the public market in July 2021.
Jason Wright, an Apax partner and chair of Paycor's board of directors, expressed his pride in their partnership, highlighting how Paycor has tripled its size since Apax's initial investment. The extraordinary growth was largely attributed to Apax’s strategic investments in product development and customer service enhancements that positioned Paycor as a leader in the mid-market HCM sector.
Adding to the sentiment, Raul Villar, Jr., the CEO of Paycor, acknowledged Apax's pivotal role in shaping the company’s strategic vision and nurturing its potential for long-term, profitable growth. He credited Apax with providing invaluable support for Paycor and its clients and associates.
Apax Partners' expertise in the software industry is well-documented, with a significant portfolio that includes other notable investments such as Duck Creek Technologies and Sophos Group. In 2024, Apax also acquired Zellis Group, a leader in payroll and HR solutions in the UK and Ireland, showcasing its commitment to enhancing its software sector influence.
As part of the transaction, Goldman Sachs & Co. LLC is acting as Paycor's exclusive financial advisor, while Kirkland & Ellis LLP serves as the legal counsel for the deal.
Paycor offers a comprehensive platform uniquely tailored for HR, payroll, and talent management, providing leaders with insights and tools that can elevate employee engagement and retention. They emphasize an integrated HCM experience that connects various mission-critical technologies, ensuring leaders can make informed decisions for their organizations. To understand more about their offerings, visit paycor.com.
Meanwhile, Paychex, Inc., known for its extensive HR technology and advisory services, serves over 745,000 clients across the U.S. and Europe. The company processes payroll for one in every twelve American private sector employees, reflecting its monumental presence in the industry. For additional details on its services and commitment to business success, explore paychex.com.
This acquisition by Paychex of Paycor not only consolidates Paychex's footprint in the HCM space but also demonstrates the ongoing trends in mergers and acquisitions within the software sector, marking a pivotal moment for future innovations and service enhancements in human capital management technologies.
Since acquiring a majority stake in Paycor for $1.3 billion in November 2018, Apax has played a crucial role in driving the company’s growth and transformation. By collaborating closely with Paycor's leadership, Apax has helped expand its operations into key markets across North America, establishing a strong foundation for its modern HCM platform aimed specifically at mid-market businesses. Following this collaborative strategy, Paycor was successfully launched on the public market in July 2021.
Jason Wright, an Apax partner and chair of Paycor's board of directors, expressed his pride in their partnership, highlighting how Paycor has tripled its size since Apax's initial investment. The extraordinary growth was largely attributed to Apax’s strategic investments in product development and customer service enhancements that positioned Paycor as a leader in the mid-market HCM sector.
Adding to the sentiment, Raul Villar, Jr., the CEO of Paycor, acknowledged Apax's pivotal role in shaping the company’s strategic vision and nurturing its potential for long-term, profitable growth. He credited Apax with providing invaluable support for Paycor and its clients and associates.
Apax Partners' expertise in the software industry is well-documented, with a significant portfolio that includes other notable investments such as Duck Creek Technologies and Sophos Group. In 2024, Apax also acquired Zellis Group, a leader in payroll and HR solutions in the UK and Ireland, showcasing its commitment to enhancing its software sector influence.
As part of the transaction, Goldman Sachs & Co. LLC is acting as Paycor's exclusive financial advisor, while Kirkland & Ellis LLP serves as the legal counsel for the deal.
Paycor offers a comprehensive platform uniquely tailored for HR, payroll, and talent management, providing leaders with insights and tools that can elevate employee engagement and retention. They emphasize an integrated HCM experience that connects various mission-critical technologies, ensuring leaders can make informed decisions for their organizations. To understand more about their offerings, visit paycor.com.
Meanwhile, Paychex, Inc., known for its extensive HR technology and advisory services, serves over 745,000 clients across the U.S. and Europe. The company processes payroll for one in every twelve American private sector employees, reflecting its monumental presence in the industry. For additional details on its services and commitment to business success, explore paychex.com.
This acquisition by Paychex of Paycor not only consolidates Paychex's footprint in the HCM space but also demonstrates the ongoing trends in mergers and acquisitions within the software sector, marking a pivotal moment for future innovations and service enhancements in human capital management technologies.
Topics Financial Services & Investing）
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