Palylocity (NASDAQ: PCTY), a Schaumburg, IL-based company which specializes in cloud-based HR and payroll software solutions, acquired Airbase, a San Francisco, CA-based provider of a modern finance and spend management software solution.
The approximately $325m acquisition of Airbase, subject to customary adjustments, will be funded by borrowings under its revolving credit facility and is not expected to impact the company’s ability to execute on the remaining $350m authorization under its share repurchase program. As of June 30, 2024, Paylocity had $401.8m of cash and cash equivalents on its balance sheet.
The acquisition of Airbase represents an expansion of Paylocity’s suite and will deliver incremental integrated value to HR and finance leaders in managing all of their spend on a single platform.
Founded in 2017, Airbase provides a spend management platform that delivers more control, visibility, and automation to finance teams.
Airbase’s spend management platform includes the following key products and capabilities:
- Bill Pay/Accounts Payable Automation: Automated invoice processing and purchase order matching, routing for approval and payment via ACH, virtual card, check or wire transfer
- Expense Management: Proactively request, approve and reconcile expenses via web or mobile app with real-time reimbursements
- Corporate Cards: Provision and deprovision ‘smart’ physical and virtual cards with pre-built spend controls and approval workflows
- Procurement: Automated procurement processes and tracking to maximize efficiency with real-time visibility and control over procure-to-pay processes
- Integration Ecosystem: Set of integrations with key third-party systems including core ERP/General Ledger providers such as Oracle NetSuite, Sage Intacct, and QuickBooks
- Workflow Automation: Integrated and connected workflows across key spend and business process systems supported by a flexible and intuitive approvals engine.
Its modern finance and spend management software solution is focused on the 100 – 5,000 employee segment of the market, with more than 500 clients with an average of over 200 employees. The company has approximately 300 employees in the United States, Canada, India and the Philippines.
Led by Toby Williams, President and CEO, Paylocity is a provider of cloud-based HR and payroll software solutions. It offers a product suite that helps businesses automate and streamline HR and payroll processes, attract and retain talent, and build culture and connection with their employees.
FinSMEs
09/09/2024