Paychex-Paycor Merger Finalized (PYCR, PAYX Merger)

A New Chapter in HR Tech: Paychex Acquires Paycor

After months of planning, regulatory reviews, and investor anticipation, Paychex, Inc. (Nasdaq: PAYX) and Paycor HCM, Inc. (Nasdaq: PYCR) are finally tying the knot.

On January 7, 2025, the two companies announced a merger agreement. Fast forward to today and all necessary regulatory and shareholder approvals have been secured. The merger is expected to officially in April, marking a major shake-up in the human capital management (HCM) space.

*Update - The merger to close over the weekend, with shares of PYCR being delisted from trading after the close of the extended hours session on Friday, April 4th.

**Update - The merger has been postponed to a TBD date

***Update - The merger is expected to be completed by April 15th, with shares of PYCR being delisted after the close of extended hours trading on April 11th, 2025

Deal Terms at a Glance

Here’s a quick snapshot of the transaction details:

Acquirer: Paychex, Inc. (PAYX)
Target: Paycor HCM, Inc. (PYCR)
Transaction Value: ~$22.50 per share in cash
Total Consideration: Estimated over $4 billion
Deal Structure: Merger via a wholly owned Paychex subsidiary
Effective Date: Expected on April 4, 2025
Stock Status: PYCR will be delisted; Paycor becomes a Paychex subsidiary

For every share of Paycor held, investors will receive $22.50 in cash, no strings attached. Well, except for applicable taxes and a little patience during the payout process.

Shareholders Gave the Green Light Early

Let’s rewind for a sec. The merger was set in motion with the written consent of Pride Aggregator, LP, which owned about 53.36% of Paycor’s voting power. Thanks to their majority stake, the merger didn’t need a formal vote by all shareholders.

The company also mailed an Information Statement on February 18, 2025, letting everyone know what’s what—and giving dissenting shareholders the option to seek appraisal under Delaware law.

So yeah, if you were hoping to vote on this one, it was already a done deal behind the scenes.

Regulatory Approvals? Check!

On February 27, 2025, Paychex announced the expiration of the HSR waiting period, a key regulatory hurdle required under U.S. antitrust laws. That gave the go-ahead from a competition standpoint, which was the last major approval needed.

Now, all that’s left is execution.

Why This Merger Matters

This isn’t just a deal on paper - it’s a strategic combo with real implications.

Paychex is already a heavyweight in payroll and HR services, serving more than 745,000 businesses across the U.S. and Europe. With Paycor in its pocket, the company gets a serious edge in the mid-market HCM segment.

Paycor, meanwhile, is known for its intuitive talent and workforce management platforms that focus heavily on leadership development and employee engagement.

Put simply: Paychex gets smarter tech. Paycor gets scale and resources. Customers? They win with a more robust, integrated offering.

What Happens to PYCR Stockholders?

So you’re a Paycor investor. What now?

Your PYCR shares will convert into $22.50 cash per share - automatically.
Shares held as treasury stock or by Paychex? Canceled, no payout.
Still holding out for an appraisal? You’ve got legal options, but you must act fast (those deadlines were outlined in the February info statement).
No further shareholder action is needed - your broker or account holder will contact you regarding payout logistics.

Heads up: Don’t send in a proxy or take any extra steps unless you’re contesting the merger.

The End of PAYX?

Not quite.

While Paycor’s PYCR stock will disappear after April 4, Paychex (PAYX) continues to trade normally on the Nasdaq. It’s Paycor that will be folded into Paychex as a wholly owned subsidiary, bringing its products and teams into the broader Paychex ecosystem.

For traders and index watchers, this means a minor reshuffling once PYCR is delisted. But for the HCM world, it’s a pretty big move.

What Investors & Analysts Are Saying

Analysts have mostly viewed this acquisition as a strategic win for Paychex.

Goldman Sachs offered a fairness opinion supporting the deal.
Analysts say the merger boosts Paychex’s SaaS capabilities, giving it stronger AI and data-driven offerings.
Market watchers expect it’ll help Paychex better compete with players like ADP, Workday, and Gusto.

What Comes Next?

Following the close:

Paycor’s executive team may shift under Paychex’s leadership.
Combined product offerings will likely roll out over the next year.
Operational and workforce integrations will be underway (translation: back-end systems and maybe a few layoffs).

Both companies have stressed their shared commitment to smooth client experiences and employee transition plans.

Key Takeaways

Paychex is officially acquiring Paycor for $22.50/share.
Deal closes April 4, 2025.
PYCR stock will be delisted.
Shareholders get automatic cash payout.
Strategic move to strengthen Paychex’s mid-market and tech stack.

Wrapping Things Up

There you have it - Paychex’s acquisition of Paycor is one for the books. It’s a strategic union designed to reshape the HCM landscape by blending tech, talent, and trusted payroll expertise. If you're a shareholder, sit tight for that sweet $22.50 per share. And if you're a client? Expect some shiny new upgrades in the months ahead.

For more info, check out the official press releases at Paychex Investor Relations or Paycor Newsroom.

FAQs

When will Paycor stop trading?

April 4, 2025, is the last day. After that, PYCR is off the Nasdaq.

Do I need to do anything to receive my payout?

Nope. The process is automatic through your broker.

What if I want an appraisal instead of the merger payout?

You must have submitted a formal written demand by early March 2025, per Delaware law. If you missed that, you’re out of luck.

Will Paychex (PAYX) still trade?

Yes! PAYX continues to trade post-merger.

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