If Johnny Paycheck had founded Paychex, his song might have been, "Take This Job and ... Let Us Do Your Payroll." The firm processes the payrolls of about 564,000 clients, making it the second-largest payroll accounting firm in the US after Automatic Data Processing. Other services include the production of accounting records and management reports; the preparation of payroll tax returns; and the collection and remittance of clients' payroll obligations. Paychex also provides human resources services, benefits administration, and group insurance management. Paychex focuses on small and midsized businesses (fewer than 100 employees) and owns more than 100 offices worldwide. The company was established in 1971.
Paychex has operations in the US and Germany. German operations include offices in Berlin, Düsseldorf, Hamburg, and Munich.
Mergers & Acquisitions
Paychex in 2012 acquired Icon Time Systems, a provider of time and attendance keeping services for small businesses. The deal was an extension of an existing relationship with Icon Time Systems. In 2011 it collaborated with that company to introduce a new product -- Paychex Smart Time time clocks for small businesses. Also in late 2012 the firm bought Expense Wire, an expense report software program from Rearden Commerce.
In 2011 the company acquired SurePayroll, a provider of payroll processing software, for $115 million. The deal gave Paychex's customers additional options for processing payroll as SurePayroll's products allow employers to enter and edit payroll information in real-time online. Through the deal, Paychex gained about 30,000 small business customers and entrenched its hold in the always important online market.
Also that year Paychex bought ePlan Services, a provider of recordkeeping and administration services for, $15 million. The deal enabled Paychex to sell retirement services to financial advisers.
Revenue increased by nearly 7% in 2012. This was partially the result of an increase in Payroll services revenue due to more checks per payroll, higher revenue per check, and price increases. Human Resources services revenue also increased that year, positively impacted by favorable trends in checks per payroll, price increases, and growth in both clients and client employees. Net income also increased by about 6% in 2012. The profits were due to the increased revenue as well as an increase in investment income.
Founder Thomas Golisano (owner of the Buffalo Sabres NHL team) owns about 10% of the company.
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