Paychex Snaps Up Paycor: $4.1 Billion Deal To Strengthen AI-Driven HR Solutions
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 07 2025
0mins
Source: Benzinga
Acquisition Announcement: Paychex, Inc. is set to acquire Paycor HCM, Inc. for $4.1 billion in an all-cash deal, with a share price of $22.50 representing a 19% premium over Paycor’s recent trading price. The acquisition aims to enhance Paychex's capabilities and is expected to close in the first half of 2025.
Financial Impact: The deal is projected to generate over $80 million in cost synergies and will be neutral to slightly accretive to earnings per share (EPS) in the first fiscal year, with further accretion anticipated thereafter.
Analyst Views on PAYX
Wall Street analysts forecast PAYX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PAYX is 120.55 USD with a low forecast of 110.00 USD and a high forecast of 126.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
0 Buy
10 Hold
2 Sell
Hold
Current: 107.190
Low
110.00
Averages
120.55
High
126.00
Current: 107.190
Low
110.00
Averages
120.55
High
126.00
About PAYX
Paychex, Inc. is a human capital management (HCM) company. The Company is engaged in delivering a full suite of technology and advisory services in human resources, employee benefit solutions, insurance, and payroll. It is a provider of integrated HCM solutions for human resources (HR), payroll, benefits, and insurance for small- to medium-sized businesses in the United States (U.S.) and parts of Europe. It supports its small-business clients by utilizing its proprietary, software as a service (SaaS) Paychex Flex platform and the Company’s SurePayroll SaaS-based solutions. Its HR solutions include HR packages, HR consulting, employee onboarding, hiring services, and artificial intelligence -assisted recruiting. Its payroll services include payroll packages, small business payroll, midsize to enterprise payroll, switch payroll companies, and payroll tax services. Its employee benefits services include Group health insurance, retirement services, and benefits administration services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
