Thursday, December 9, 2010

Paychex Consumes SurePayroll

Paychex's acquisition of SurePayroll is an interesting move.  SurePayroll is one of the largest, independent payroll service bureaus that has been biting at the heals of ADP and Paychex for many years.  The release, linked below, calls out a few key areas of interest to Paychex:  their SaaS model, mobile payroll applications, and a big entry point into the Banking payroll channel.

Last month, ADP & Perquest, this month Paychex & SurePayroll... we can only wonder what the new year might bring.

“We are excited for our customers, channel partners, employees, and small businesses everywhere. This is a great combination of strengths,” says Michael D. Alter, SurePayroll president.   http://www.businesswire.com/news/home/20101209005814/en/Paychex-Acquire-SurePayroll

2 comments:

  1. $115 million for a company with $23 million in revenue (5x multiple) seems awfully generous.

    Still, this gives paychex a toehold in the self-service payroll arena and access to the banking channel which they had been struggling to develop on their own as of late.

    Paychex has never had a strong technology focus (most of their web apps look as if they were coded by web design dropouts from 2001). I hope this acquisition changes that somewhat.

    If Paychex' past acquisitions (advantage payroll and interpay last decade)are any indicator Sure Payroll's operations team is pretty safe, though its anyone's guess how they integrate (or disband) the sales side.

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  2. This is great. If these two companies will make a better job for all, then it's actually a good decision.

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