Paycor jumps on reported buyout deal by Paychex
06/01/2025 13:07
** Shares of Paycor HCM PYCR.O up 23.2% to $22.85 premarket on
potential M&A news
** PYCR shares could open at highest levels since Oct 2013,
if gains hold.
** Paychex PAYX.O in advanced talks to acquire smaller payroll
processing rival PYCR, Bloomberg News reported on Sunday, citing
people with knowledge
** A deal may be announced as soon as this week, said the
people, adding nothing has been finalized and talks could still
fall through, according to the report
** Cincinatti, Ohio-based PYCR's market value stood at ~$3.3
bln as of Fri, per LSEG data. Rochester, New York-based PAYX had
market cap of ~$50 bln
** Shares of PAYX down 0.3% at $139.20 before the bell
** Potential deal would be a surprise, given client overlap
and platform duplication, TD Cowen wrote in note, saying views
PAYX as being opportunistic "evaluating an undervalued asset"
** TD Cowen has 'buy' rating on PYCR with $22 PT
** In 2024, PYCR shares lost 14%, while PAYX shares rose
~18%
(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper@tr.com 1-646-279-6380))