Paylocity Announces Completion of Acquisition of Airbase Inc.
Paylocity (NASDAQ: PCTY) has completed its acquisition of Airbase Inc., a modern finance and spend management software solution. This acquisition expands Paylocity's suite and is expected to deliver integrated value to HR and finance leaders by allowing them to manage all spend on a single platform. The integration will enable companies to manage payroll and non-payroll spend through a single pane of glass, providing real-time visibility, faster financial close, improved planning, and stronger financial controls.
Toby Williams, President and CEO of Paylocity, stated that this acquisition expands their total addressable market to the Office of the CFO and strengthens their position as the most modern software platform in the market. The acquisition is expected to represent approximately 1% of total revenue and dilute adjusted EBITDA margin by approximately 100 basis points in fiscal 2025.
Paylocity (NASDAQ: PCTY) ha completato l'acquisizione di Airbase Inc., una soluzione moderna per la gestione delle finanze e delle spese. Questa acquisizione espande il portafoglio di Paylocity e si prevede che offrirà valore integrato ai leader HR e finanziari consentendo loro di gestire tutte le spese su un'unica piattaforma. L'integrazione permetterà alle aziende di gestire l'elaborazione paga e le spese non relative alla busta paga attraverso un'unica interfaccia, fornendo visibilità in tempo reale, tempi di chiusura finanziaria più rapidi, migliori pianificazioni e controlli finanziari più solidi.
Toby Williams, Presidente e CEO di Paylocity, ha dichiarato che questa acquisizione espande il loro mercato totale indirizzabile all'ufficio del CFO e rafforza la loro posizione come la piattaforma software più moderna sul mercato. Si prevede che l'acquisizione rappresenti circa l'1% del fatturato totale e diluisca il margine EBITDA rettificato di circa 100 punti base nel 2025 fiscale.
Paylocity (NASDAQ: PCTY) ha completado la adquisición de Airbase Inc., una solución moderna de software para la gestión financiera y de gastos. Esta adquisición amplía la oferta de Paylocity y se espera que proporcione valor integrado a los líderes de RRHH y finanzas permitiéndoles gestionar todos los gastos en una única plataforma. La integración permitirá a las empresas gestionar la nómina y los gastos no salariales a través de una única interfaz, proporcionando visibilidad en tiempo real, cierres financieros más rápidos, mejor planificación y controles financieros más sólidos.
Toby Williams, presidente y CEO de Paylocity, declaró que esta adquisición amplía su mercado total direccionable a la oficina del CFO y refuerza su posición como la plataforma de software más moderna en el mercado. Se espera que la adquisición represente aproximadamente el 1% de los ingresos totales y diluya el margen EBITDA ajustado en aproximadamente 100 puntos básicos en el año fiscal 2025.
Paylocity(NASDAQ: PCTY)는 현대적인 재무 및 지출 관리 소프트웨어 솔루션인 Airbase Inc.를 인수했습니다. 이 인수는 Paylocity의 제품군을 확장하며 HR 및 재무 리더에게 통합된 가치를 제공할 것으로 예상됩니다, 모든 지출을 단일 플랫폼에서 관리할 수 있도록 합니다. 통합을 통해 기업은 단일 인터페이스를 통해 급여 및 비급여 지출을 관리할 수 있게 되어, 실시간 가시성, 더 빠른 재무 마감, 개선된 계획 및 강화된 재무 통제를 제공합니다.
Paylocity의 CEO인 Toby Williams는 이 인수가 CFO의 사무실로 향하는 총 주소 가능 시장을 확장하고 시장에서 가장 현대적인 소프트웨어 플랫폼으로서의 입지를 강화한다고 말했습니다. 이 인수는 총 수익의 약 1%를 차지할 것으로 예상되며, 2025 회계 연도에 조정된 EBITDA 마진을 약 100 베이시스 포인트 희석할 것으로 보입니다.
Paylocity (NASDAQ: PCTY) a finalisé l'acquisition d'Airbase Inc., une solution moderne de logiciel de gestion des finances et des dépenses. Cette acquisition élargit l'offre de Paylocity et devrait fournir une valeur intégrée aux dirigeants RH et financiers en leur permettant de gérer toutes les dépenses sur une plateforme unique. L'intégration permettra aux entreprises de gérer la paie et les dépenses non liées à la paie via un seul tableau de bord, offrant une visibilité en temps réel, une clôture financière plus rapide, une meilleure planification et un contrôle financier renforcé.
Toby Williams, président et PDG de Paylocity, a déclaré que cette acquisition élargit leur marché total adressable au bureau du CFO et renforce leur position en tant que plateforme logicielle la plus moderne sur le marché. On s'attend à ce que l'acquisition représente environ 1 % du chiffre d'affaires total et dilue la marge EBITDA ajustée de près de 100 points de base au cours de l'exercice 2025.
Paylocity (NASDAQ: PCTY) hat die Übernahme von Airbase Inc. abgeschlossen, einer modernen Softwarelösung für Finanz- und Ausgabenmanagement. Diese Übernahme erweitert das Portfolio von Paylocity und wird voraussichtlich integrierten Wert für HR- und Finanzleiter liefern, indem es ihnen ermöglicht, alle Ausgaben auf einer einzigen Plattform zu verwalten. Die Integration wird es Unternehmen ermöglichen, Gehaltsabrechnungen und nicht-gehaltsabhängige Ausgaben über ein einziges Bedienfeld zu verwalten, was Echtzeittransparenz, schnellere finanzielle Abschlüsse, verbesserte Planung und stärkere finanzielle Kontrollen bietet.
Toby Williams, Präsident und CEO von Paylocity, erklärte, dass diese Übernahme ihren insgesamt adressierbaren Markt auf das Büro des CFO ausdehnt und ihre Position als die modernste Softwareplattform auf dem Markt stärkt. Es wird erwartet, dass die Übernahme ungefähr 1 % des Gesamtumsatzes ausmacht und die angepasste EBITDA-Marge um ungefähr 100 Basispunkte im Geschäftsjahr 2025 verwässert.
- Expansion of Paylocity's suite into finance and spend management
- Increased total addressable market beyond HCM and into the Office of the CFO
- Integration of payroll and non-payroll spend management on a single platform
- Expected to represent approximately 1% of total revenue in fiscal 2025
- Dilution of adjusted EBITDA margin by approximately 100 basis points in fiscal 2025
Insights
The acquisition of Airbase by Paylocity is a strategic move that significantly expands their product offering and market reach. By integrating Airbase's finance and spend management solutions, Paylocity is positioning itself as a more comprehensive platform for both HR and finance departments. This move is likely to:
- Increase Paylocity's total addressable market, potentially driving future revenue growth
- Enhance customer retention by offering a more integrated suite of services
- Improve competitive positioning against other HCM and financial software providers
Financially, the acquisition is expected to contribute about
This acquisition marks a significant shift in Paylocity's market strategy, expanding beyond its core HCM focus into the finance and spend management space. Key implications include:
- Potential for increased market share in the mid-market segment where Paylocity has a strong presence
- Enhanced value proposition for CFOs, potentially opening up new sales channels
- Improved competitive stance against both HCM and financial software competitors
The move aligns with the trend of platform consolidation in enterprise software, where customers increasingly seek integrated solutions. This could lead to higher customer lifetime value and potentially lower customer acquisition costs for Paylocity. However, success will depend on seamless integration and effective cross-selling to existing clients. The market's reaction to this strategic shift will be important to watch, as it could influence other players in the HCM and financial software sectors to pursue similar expansions.
SCHAUMBURG, Ill., Oct. 01, 2024 (GLOBE NEWSWIRE) -- Paylocity (NASDAQ: PCTY), a leader in cloud-based HR and payroll software solutions, has completed its acquisition of Airbase Inc., a modern finance and spend management software solution that combines bill pay / accounts payable automation, expense management, corporate cards and procurement capabilities. The acquisition of Airbase represents an expansion of Paylocity’s suite and is expected to deliver incremental integrated value to HR and finance leaders in managing all of their spend on a single platform – expanding the Paylocity total addressable market beyond HCM and further into the Office of the CFO.
The integration of Airbase’s finance solutions with Paylocity’s HCM platform will allow companies to manage all payroll and non-payroll spend through a single pane of glass, allowing for real-time visibility, faster financial close, improved planning, and stronger financial controls.
“With our acquisition of Airbase, we are expanding our total addressable market to the Office of the CFO and strengthening our position as the most modern software platform in the market by enabling our nearly 40,000 clients, as well as prospects throughout our target market, to manage all business-related spend on a single integrated platform,” said Toby Williams, President and CEO of Paylocity.
The acquisition of Airbase is expected to represent approximately
About Paylocity
Headquartered in Schaumburg, IL, Paylocity (NASDAQ: PCTY) is an award-winning provider of cloud-based HR and payroll software solutions. Founded in 1997 and publicly traded since 2014, Paylocity offers an intuitive, easy-to-use product suite that helps businesses automate and streamline HR and payroll processes, attract and retain talent, and build culture and connection with their employees. Known for its unique culture and consistently recognized as one of the best places to work, Paylocity accompanies its clients on the journey to create great workplaces and help all employees achieve their best. For more information, visit www.paylocity.com.
About Airbase
Headquartered in San Francisco and founded in 2017, Airbase provides an innovative all-in-one spend management platform that delivers more control, visibility, and automation to today’s finance teams than any other solution for companies with between 100 and 5,000 employees.
Safe Harbor / Forward Looking Statements
This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements other than historical information, constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act, Section 21E of the Exchange Act, and the Private Litigation Reform Act of 1995, each as amended. Words such as “expects,” “believes,” “may,” “should,” “opportunity”, “will,” “would”, “seeks” “intends,” “projects,” “plans,” “estimates,” “targets,” “anticipates,” and other similar words or expressions, or the negative thereof, generally can be used to help identify these forward-looking statements. Examples of forward-looking statements include statements relating to the anticipated benefits and synergies of the acquisition, the impact of the acquisition on the Company’s business and future financial condition and operating results, the expansion of the Company’s total addressable market as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on expectations and assumptions that the Company believes to be reasonable when made, but that may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict. In addition to the factors described below, risks and uncertainties include those described in Part I, Item 1A, "Risk Factors," and elsewhere in our Annual Report on Form 10-K for our fiscal year ended June 30, 2024 and as may be described from time to time in future reports we file with the Securities and Exchange Commission. There also may be other factors that we cannot anticipate or that are not described herein, generally because we do not currently perceive them to be material. Such factors could also cause results to differ materially from our expectations.
The forward-looking statements included in this document speak only as of the date they are made, and we do not undertake to update these statements other than as required by law.
Some of the important factors that could cause actual results to differ materially and adversely from forward-looking statements relate to, among other things, the ability to obtain necessary regulatory and stockholder approvals to consummate the acquisition; risks related to the ability to realize the anticipated benefits of the potential acquisition, including the possibility that the expected benefits from the proposed transaction will not be realized or will not be realized within the expected time period; the risk that the businesses will not be integrated successfully; disruption from the potential acquisition making it more difficult to maintain business and operational relationships; negative effects of announcing the potential acquisition or the consummation of the potential acquisition on the market price of our common stock, credit ratings or operating results; significant or unexpected costs associated with the potential acquisition; unknown liabilities; risks related to management and oversight of the expanded business and operations of the Company following the transaction due to the increased size and complexity of its business; the risk of litigation and/or regulatory actions related to the potential acquisition; the possibility of increased scrutiny by, and/or additional regulatory requirements of, governmental authorities as a result of the transaction; the demand for our products and services, including as a result of macroeconomic conditions; net sales growth; the effects of competition; our brand and reputation; the state of the economy; the state of the human capital management, payroll solutions and spend management markets; the effects of the potential acquisition on relationships with our employees, business or collaboration partners or governmental entities; the ability to retain and hire key personnel; potential adverse reactions or changes to business relationships resulting from the announcement or completion of the potential acquisition; events that could disrupt our business, supply chain, technology infrastructure or demand for our products and services, such as international trade disputes, natural disasters, climate change, public health issues, cybersecurity events, geopolitical conflicts, military conflicts or acts of war; our ability to address expectations regarding environmental, social and governance matters and meet related goals; continuation or suspension of share repurchases; net earnings performance; earnings per share; future dividends; capital allocation and expenditures; liquidity; return on invested capital; expense leverage; changes in interest rates; changes in foreign currency exchange rates; commodity or other price inflation and deflation; our ability to issue debt on terms and at rates acceptable to us; the challenges of operating in international markets; the adequacy of insurance coverage; the effect of accounting charges; the effect of adopting certain accounting standards; the impact of legal and regulatory changes, including changes to tax laws and regulations; guidance for fiscal 2025 and beyond; financial outlook; and the impact of acquired companies on our organization and the ability to recognize the anticipated benefits of any acquisitions.
Contact:
Ryan Glenn
investors@paylocity.com
Nicole Andergard
pr@paylocity.com
www.paylocity.com
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