Investing.com– Paychex Inc (NASDAQ:PAYX) is in talks to buy smaller rival Paycor (NASDAQ:PYCR), Bloomberg reported on Sunday, as the human resources firm looks to consolidate its market share amid improving earnings.
A deal may be announced as soon as this week, the Bloomberg report said, although talks are still ongoing.
Paycor has a market capitalization of about $3.3 billion as of its last close on Friday, while Paychex is worth about $50 billion.
Rochester, New York-based Paychex has benefited from a robust U.S. labor market over the past year, while its artificial intelligence-powered HR services also saw increased demand. The stock rose about 18% in 2024, having hit a record high in early-December.
Both Paychex and Paycor could not be immediately reached for comment outside business hours.