Paylocity, a leader in HR and payroll software solutions, has announced its acquisition of Airbase Inc., a modern finance and spend management platform. This acquisition aims to strengthen Paylocity’s offerings by integrating finance capabilities, providing businesses with a unified platform for managing both HR and finance operations.
- Expansion of Paylocity’s Suite: The acquisition enhances Paylocity’s platform by integrating Airbase’s finance and spend management tools, including accounts payable automation, corporate cards, and procurement management.
- Unified Platform for HR and Finance Leaders: This integration offers companies the ability to view payroll and non-payroll spending through a single interface, streamlining operations and providing real-time financial insights.
- Key Differentiator for Paylocity: The combination of HR and finance solutions is expected to improve financial controls, expedite financial closings, and strengthen planning processes, positioning Paylocity as a key player in the HR and finance space.
- Key Features of Airbase’s Spend Management Platform:
- Bill Pay/Accounts Payable Automation: Streamlines invoice processing with multiple payment options.
- Expense Management: Enables real-time expense reconciliation with web and mobile capabilities.
- Corporate Cards: Offers smart physical and virtual cards with spending controls.
- Procurement: Automated processes to maximize efficiency with real-time visibility.
- Integration Ecosystem: Seamless integration with key systems like Oracle NetSuite, QuickBooks, and more.
- Workflow Automation: Intuitive approval workflows for efficient business operations.
- Financial Impact of the Acquisition: The acquisition is valued at approximately $325 million and is expected to dilute Paylocity’s adjusted EBITDA margin by around 100 basis points in fiscal 2025. Despite the expense, the integration is expected to drive future growth.
Paylocity’s acquisition of Airbase represents a strategic move to offer businesses an all-encompassing platform that integrates HR and finance. By unifying spend management with HR solutions, Paylocity continues to position itself as a leader in cloud-based software, catering to both HR and finance leaders with innovative tools that drive efficiency.
