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Paychex To Acquire Oasis Outsourcing Acquisition For $1.2 Bln - Quick Facts

Paychex Inc. (PAYX), a payroll processor and human resources services provider, said Monday that it has agreed to acquire Oasis Outsourcing Acquisition Corp, the nation's largest privately-owned professional employer organization or PEO and a provider of human resources outsourcing services.

The company noted that the total cash purchase price is $1.2 billion, subject to working capital and other adjustments. The acquisition is expected by the company to be financed through a combination of cash on Paychex's balance sheet and borrowings under existing credit facilities or new debt.

Headquartered in West Palm Beach, Florida, Oasis has approximately 1,100 employees. The company serves more than 8,400 clients across all 50 states with its HR solutions, employee benefits, payroll administration, and risk management services.

Paychex said it will see a number of revenue and cost synergies as a result of this transaction. Excluding transaction costs, the acquisition is expected to have minimal impact on the company's fiscal year 2019 earnings per share.

Paychex noted that the acquisition will significantly advance its position in HR outsourcing, leveraging the scope of its technology platform and providing new clients access to Paychex's products and technology-enabled services.

Paychex will now serve more than 1.4 million worksite employees or WSEs through its HR outsourcing services.

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