Paychex Strikes $4.1 Billion Deal for Rival Payroll Firm Paycor

Paychex Inc. agreed to acquire rival payroll processor Paycor HCM Inc. for about $4.1 billion in cash, including debt.

The company is paying $22.50 per share for Cincinnati-based Paycor, according to a statement Tuesday. That’s 21% higher than the price on Friday, before Bloomberg News reported on Sunday that talks were underway.

The deal brings together two major players in the market for human-resources software and services, a fairly fragmented market experiencing recent consolidation. Automatic Data Processing Inc. agreed in October to acquire WorkForce Software.

The acquisition “will enhance our capabilities upmarket, broaden our suite of AI-driven HR technology capabilities, ...