Paylocity Acquires Airbase for $325 Million

Paylocity, a leading provider of payroll and HR software, has announced its acquisition of Airbase, a fintech startup specializing in corporate spend management. The deal, valued at $325 million, is expected to close in the first or second quarter of Paylocity's fiscal year, which falls within the next 30 to 60 days.

• Paylocity's acquisition of Airbase marks a significant expansion of its offerings beyond its core HR software solutions.
• The deal will position Paylocity as a leading provider of integrated HCM (Human Capital Management) and financial solutions for mid-market businesses.

Expanding Paylocity's Reach Beyond HCM

Paylocity's CEO expressed that the acquisition of Airbase will help the company expand its total addressable market beyond traditional HR software solutions. It is aiming to delve deeper into the "office of the CFO," offering integrated solutions that address both HR and financial management needs.

• The acquisition aligns with Paylocity's strategic goal of becoming a comprehensive provider of solutions for mid-market businesses, addressing both HR and financial management needs.
• By incorporating Airbase's expertise in corporate spend management, Paylocity seeks to provide a unified platform that streamlines critical business operations for its customers.

Airbase: A Leading Corporate Spend Management Platform

Airbase, founded in 2017, has established itself as a prominent player in the corporate spend management sector. It offers a comprehensive platform that helps mid-sized businesses streamline their spending processes, encompassing bill payments, corporate cards, and employee reimbursements.

• Airbase's focus on providing software solutions to mid-sized companies aligns perfectly with Paylocity's customer base.
• The acquisition brings Paylocity a proven and robust platform for managing corporate spend, enhancing its ability to cater to the financial needs of its customers.

Paylocity's Acquisition Strategy

Paylocity's acquisition of Airbase is a strategic move that leverages the company's strong financial position and its existing network of customers in the mid-market. This acquisition is seen as a significant step in Paylocity's broader growth strategy.

• The acquisition is being funded through Paylocity's existing revolving credit facility, demonstrating the company's financial strength and commitment to strategic acquisitions.
• This acquisition is a testament to Paylocity's vision for growth and its ambition to become a dominant force in the fintech and HCM sectors.

Key Highlights of the Acquisition

The acquisition of Airbase by Paylocity is a significant development in the fintech and HCM landscape. The deal highlights the growing demand for integrated solutions that streamline both HR and financial management for businesses.

• The deal is valued at $325 million, reflecting Airbase's strong track record and its potential for growth within Paylocity's ecosystem.
• Paylocity expects the acquisition to close in the coming months, bringing immediate value to its customers and shareholders.

Impact on Airbase and Paylocity

The acquisition will create new opportunities for both Airbase and Paylocity. Airbase will benefit from Paylocity's extensive customer base and resources, while Paylocity gains a robust platform for managing corporate spend.

• Airbase's founder highlighted the opportunity to leverage Paylocity's size and scale to reach a larger audience, expanding the reach of its platform.
• Paylocity's acquisition of Airbase is expected to accelerate growth for both companies, driving innovation and value creation for their respective customers.