Paychex Inc. announced Monday that it plans to acquire privately held firm Oasis Outsourcing Acquisition Corp. for $1.2 billion.
Payroll services company Paychex hopes that the acquisition of Oasis will bolster its own professional employer organization (PEO) strategy and potentially augment its client base. Oasis serves more than 8,400 clients across all 50 states, and provides HR solutions, employee benefits, payroll administration, and risk management services. Paychex expects the transaction to potentially create "a number of revenue and cost synergies”.
Paychex might finance the acquisition through a combination of cash and existing credit facilities or new debt. According to the company, the deal should have minimal impact on its FY 2019’s earnings per share excluding transaction costs.