M&A · Tech · Services-Prepackaged Software
Paychex Inc to acquire Paycor HCM, Inc.
Announced Jan 7, 2025 · Closed Apr 14, 2025
Deal value$4.10BEV $4.10B
Premium21.0%To unaffected price
EV / Adj. EBITDA25.6x6.0x EV / Revenue
ConsiderationAll cash$22.50 per share
Transaction
- Acquirer
- Paychex Inc (PAYX)
- Target
- Paycor HCM, Inc. (PYCR)
- Buyer type
- Strategic
- Offer price per share
- $22.50
- Enterprise value
- $4.10B
- Status
- Closed Apr 14, 2025
Deal protections
- Break fee (target pays)
- —
- Reverse fee (buyer pays)
- —
- Go-shop
- No-shop
- Financing
- No financing condition
Advisors
- To the acquirer
- JPMorgan
- To the target
- Goldman Sachs
Sector context · Tech
- Comparable deals
- 59 in the prior 24 months
- Premium
- 21.0% vs. 38.0% sector median
- EV / Adj. EBITDA
- 25.6x vs. 15.5x sector median
- Break fee
- Sector median 3.1%
Timeline
- AnnouncedJan 7, 2025
- Proxy filedFeb 5, 2025
- Definitive proxyFeb 18, 2025
- Shareholder vote—
- ClosedApr 14, 2025
Valuation · fairness opinions
Discounted cash flow$18.18$26.50
Future share price$17.88$24.31
Premiums paid$22.77$27.17
52-week trading range$18.01$24.09
Offer $22.50
Implied value per Paycor HCM, Inc. share by analysis, from Goldman Sachs · DCF discount rate 11%–13%.