Paychex

Last updated

Paychex, Inc.
Company type Public
Industry
Founded1971;54 years ago (1971)
Founder B. Thomas Golisano
Headquarters Rochester, New York, U.S.
Area served
  • United States
  • Brazil
  • Denmark
  • Germany
  • Norway
  • Sweden
Key people
ServicesPayroll and HR services
RevenueIncrease2.svg US$5.57 billion (2025)
Increase2.svg US$2.21 billion (2025)
Decrease2.svg US$1.66 billion (2025)
Total assets Increase2.svg US$16.6 billion (2025)
Total equity Increase2.svg US$4.13 billion (2025)
Number of employees
c. 19,000 (2025)
Website paychex.com
Footnotes /references
[1]

Paychex, Inc. is an American company that provides human resources, payroll, and employee benefits outsourcing services for small- to medium-sized businesses. [1] Founded in 1971 and headquartered in Rochester, New York, [2] the company has more than 100 offices serving approximately 800,000 payroll clients in the U.S. and Europe. [1] Paychex is ranked 681st on the Fortune 500 list of largest corporations by revenue. [3]

Contents

History

Paychex was founded in 1971 by Tom Golisano, who started the company with only $3,000. [4] [5]

The operation grew to include 18 franchises and partnerships, which were eventually consolidated into one private company in 1979. In 1983, the company (ticker symbol: PAYX) became a public company via an initial public offering. [6] [7]

Paychex acquired Pay-Fone in 1995. [8] In 1996, the company acquired Olsen Computer Systems [9] and National Business Systems. [10]

Between 2002 and 2003, it acquired Advantage Payroll Services, [11] Interpay, [12] and Time in a Box, [13] followed by Time in a Box's parent Stromberg in 2004. [14] [15]

The company purchased Hawthorne Benefit Technologies in 2007, [16] , SurePayroll, Inc. in 2010, [17] and ePlan Services in 2011. [18] [19] It Icon Time Systems [20] and ExpenseWire in 2012 for an undisclosed amount. [21] Between 2013 and 2017, it purchased myStaffingPro [22] NETtime solutions [23] Advance Partners, [24] and Human Resources Outsourcing, Inc. [25]

Rochester Democrat and Chronicle named Paychex one of the Best Places to Work in Rochester in 2016. [26]

It acquired Lessor Group 2018. [27] That year it also acquired Oasis for a reported $1.2 billion. [28] [29] [30] [31]

In 2019, Paychex was named to the Fortune list of Future 50 companies. [32]

John Gibson has been CEO of Paychex since October 2022. [33] [34]

The company generated $5.2 billion in revenue and $13 billion in assets in 2024. [2]

In 2025, it acquired Paycor for $4.1 billion [35] [36] [37]

In May 2025, Paychex acquired SixFifty, the legal tech unit of U.S. law firm Wilson Sonsini Goodrich & Rosati, in an all-cash deal worth between $70 million and $85 million. [38]

Small Business Employment Watch

Paychex and IHS Markit launched a Small Business Jobs Index in 2014 that measures the health of businesses employing 50 people or less. [39] The IHS Markit Small Business Employment Watch shares small business jobs data beginning 2005 and wage data from 2011.[ citation needed ] [40] The Employment Watch is frequently used by financial experts, analysts, and journalists assessing the economic outlook. [41]

References

  1. 1 2 3 "Paychex, Inc. Annual Form 10-K". U.S. Securities and Exchange Commission. July 11, 2025.
  2. 1 2 "Paychex (PAYX)". Forbes. Retrieved September 9, 2020.
  3. ↑ "Paychex" . Fortune.
  4. ↑ Thomas, Kathryn Quinn (October 8, 2004). "Golisano built Paychex into a success story". Rochester Business Journal.
  5. ↑ "Paychex, Inc. (PAYX) Company Profile & Facts – Yahoo Finance". Yahoo Finance . Retrieved August 31, 2020.
  6. ↑ "Paychex, Inc. History". FundingUniverse. Retrieved August 31, 2020.
  7. ↑ "Servicers". Forbes . October 11, 1999. Retrieved August 31, 2020.
  8. ↑ "Pay-Fone Systems to Be Sold for $10.5 Million in Stock". LA Times.
  9. ↑ "Paychex Acquires Olsen" . Los Angeles Times . November 22, 1996.
  10. ↑ "Company News; Paychex Plans to Buy National Business Solutions" . The New York Times . Bloomberg News. June 26, 1996. pp. D4. Archived from the original on March 21, 2025.
  11. ↑ "Company News; Paychex to Buy Advantage Payroll for $240 Million" . The New York Times . Bloomberg News. September 19, 2002. pp. C4. Archived from the original on March 21, 2025.
  12. ↑ "Paychex to acquire rival InterPay" . American City Business Journals . March 17, 2003. Archived from the original on March 21, 2025.
  13. ↑ "Paychex Acquires Product Line From Stromberg" . Accounting Today. October 16, 2003.
  14. ↑ "Paychex Completes Acquisition of Stromberg". Accounting Today. April 14, 2004.
  15. ↑ Smith, David A. (April 14, 2004). "Lake Mary, Fla.-Based Software Company Sold to Rochester, N.Y.-Based Paychex". Republican-American . Retrieved March 20, 2025.
  16. ↑ "Paychex announces acquisition of BeneTrac". Reuters . September 13, 2007.
  17. ↑ Yue, Lorene (December 13, 2010). "SurePayroll bought by rival Paychex for $115M" . Crain's Chicago Business . Archived from the original on July 22, 2012.
  18. ↑ "Paychex Gains From EPlan Deal, But Stock Still Too Rich". Forbes . May 23, 2011.
  19. ↑ "Paychex Acquires ePlan Services". Business Wire . May 3, 2011. Retrieved March 20, 2025.
  20. ↑ Dougherty, Nate (January 9, 2012). "Paychex acquires Icon Time Systems". Rochester Business Journal.
  21. ↑ Treadway, Clint (December 3, 2012). "Paychex Acquires ExpenseWire". CPA Practice Advisor. Retrieved January 23, 2025.
  22. ↑ "Paychex Announces Acquisition of myStaffingPro" (Press release). Business Wire. June 12, 2013. Archived from the original on March 4, 2025.
  23. ↑ "Paychex Expands Its Software-As-A-Service Based Solutions By Acquiring Nettime" . Forbes . June 19, 2014. Archived from the original on March 21, 2025.
  24. ↑ "Paychex (PAYX) Completes Advance Partners Acquisition". Nasdaq . December 23, 2015.
  25. ↑ "Paychex acquires HR Outsourcing, Inc". RochesterFirst. August 21, 2017.
  26. ↑ "Top Workplaces | The Democrat and Chronicle". Top Workplaces. Retrieved September 9, 2020.
  27. ↑ Fanelli, Gino (March 1, 2018). "Paychex acquires Lessor Group". Rochester Business Journal.
  28. ↑ "Paychex Acquires Oasis Outsourcing for $1.2 Billion" . Private Equity. The Wall Street Journal . December 21, 2018. Archived from the original on May 11, 2024.
  29. ↑ Prang, Allison (November 26, 2018). "Paychex to Buy Human-Resources Firm Oasis for $1.2 Billion" . Business. The Wall Street Journal .
  30. ↑ Banerjee, Arunima (November 26, 2018). Dasgupta, Shounak (ed.). "Paychex to buy outsourcing firm Oasis for $1.2 billion". Reuters .
  31. ↑ Bandell, Brian (November 27, 2018). "Oasis Outsourcing to be acquired by PayChex" . Professional Services. South Florida Business Journal. Archived from the original on April 4, 2023.
  32. ↑ "Paychex". Fortune. Retrieved September 9, 2020.
  33. ↑ "Paychex Names John Gibson As New CEO; Martin Mucci To Remain As Chairman". Nasdaq . Retrieved June 23, 2023.
  34. ↑ Deckert, Andrea (October 14, 2022). "Paychex expands board with addition of Gibson as new CEO". Rochester Business Journal. Retrieved March 20, 2025.
  35. ↑ Ojea, Sabela (January 7, 2025). "Paychex to Acquire Competitor Paycor HCM" . Markets & Finance, Investing. The Wall Street Journal . Retrieved March 21, 2025.
  36. ↑ G, Priyanka (January 7, 2025). "Paychex to buy rival Paycor in $4.1 bln deal to expand AI-driven HR products". Reuters . Retrieved March 20, 2025.
  37. ↑ Pethe, Shrilekha (January 7, 2025). "M&A News: Paychex (NASDAQ:PAYX) Will Acquire PYCR for $4.1B". Stocks. TipRanks. Retrieved March 20, 2025.
  38. ↑ Merken, Sara; Merken, Sara (July 30, 2025). "Law firm Wilson Sonsini sells legal tech unit SixFifty to Paychex". Reuters. Retrieved August 5, 2025.
  39. ↑ Karol, Gabrielle (January 9, 2016). "Paychex, IHS Launch Small Business Jobs Index". Fox Business . Retrieved September 5, 2020.
  40. ↑ "Small Business Employment Watch provided by Paychex | IHS Markit". www.paychex.com. Retrieved September 5, 2020.[ self-published source ]
  41. ↑ Carney, John (June 30, 2015). "Don't Look for Paychex to Bounce" . The Wall Street Journal . Archived from the original on July 19, 2024. Retrieved September 5, 2020.