Paylocity, a leader in cloud-based HR and payroll software, has announced the acquisition of Airbase Inc., a finance and spend management software provider. This strategic move expands Paylocity’s capabilities beyond human capital management (HCM) to include tools that will empower HR and finance leaders to manage all organizational spend from a single platform. The acquisition is a major step towards streamlining payroll and non-payroll financial operations.
- Overview of the Acquisition:
- Paylocity has completed its acquisition of Airbase Inc., a modern finance and spend management software solution.
- Airbase offers tools like accounts payable automation, expense management, corporate cards, and procurement capabilities.
- Integration of Airbase with Paylocity’s HCM:
- The integration will allow companies to manage payroll and non-payroll spend on a single platform.
- Key benefits include real-time visibility, a faster financial close, enhanced planning, and stronger financial controls.
- Strategic Expansion into the Office of the CFO:
- With this acquisition, Paylocity expands its total addressable market beyond HCM, now targeting the Office of the CFO.
- Toby Williams, Paylocity’s CEO, stated that this strengthens Paylocity’s position as a modern software platform.
- This move gives Paylocity’s nearly 40,000 clients and potential prospects access to a more comprehensive, integrated business platform.
- Financial Impact:
- The acquisition is expected to represent 1% of total revenue and dilute EBITDA margin by approximately 100 basis points in fiscal 2025.
- Paylocity will update its financial guidance during the first quarter of fiscal 2025.
Paylocity’s acquisition of Airbase broadens its offerings beyond HR and payroll, giving organizations a powerful, all-in-one platform to manage both payroll and non-payroll expenses. This strategic move positions Paylocity to meet the evolving needs of the Office of the CFO and enhances the value offered to existing clients.
