Paylocity Makes a $325 Million Play to Expand Its Reach From HR to the CFO's Office
A Big Move for Paylocity
In its biggest deal to date, Paylocity has agreed to acquire the business management automation specialist Collective[i] for $325 million in cash, a deal that could help Paylocity expand its product portfolio beyond human resources into the CFO's office.
The Players
Paylocity is best known as a provider of cloud-based human capital management software. Collective[i], on the other hand, offers a suite of cloud-based financial management tools, including accounts payable and expense management, geared toward small businesses.
Expected Benefits Of The Deal
The deal is expected to close in the first quarter of 2023. Paylocity said the acquisition would add expense management and accounts payable automation solutions to its product offerings. The company also said the deal would expand its reach into the small-business market, where Collective[i] has a strong presence.
Paylocity's Growing Ambitions
The acquisition is the latest in a series of moves by Paylocity to expand its reach beyond HR and deepen its presence in the small-business market. In recent years, the company has acquired several companies that offer payroll, timekeeping, and other HR-related services.
The Bottom Line
The acquisition of Collective[i] is a significant move for Paylocity, as it will allow the company to expand its product portfolio beyond HR and into the CFO's office. The deal is also expected to help Paylocity expand its reach into the small-business market.
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