Slide 1: Paychex to acquire Paycor
S T R I C T L Y P R I V A T E A N D C O N F I D E N T I A L Paychex to acquire Paycor January 7, 2025
Slide 2: Forward Looking Statements
C O N F I D E N T I A L 2 Forward Looking Statements Copyright 2025, Paychex, Inc. All rights reserved. Confidential and proprietary Certain written statements in this presentation may contain, and members of management may from time to time make or discuss statements which constitute, "forward - lo
Slide 3: Today's Presenters
C O N F I D E N T I A L 3 Today’s Presenters John Gibson President and CEO, Paychex Bob Schrader SVP and CFO, Paychex Raul Villar, Jr. CEO, Paycor Copyright 2025, Paychex, Inc. All rights reserved. Confidential and proprietary
Slide 4: John Gibson, President and CEO of Paychex
C O N F I D E N T I A L 4 John Gibson President and CEO of Paychex For over 50 years, Paychex has been committed to helping businesses succeed. This acquisition represents a significant milestone in our journey to provide best - in - class HCM solutions to businesses of all sizes. C O N F I D E N T
Slide 5: Overview of Transaction Rationale
C O N F I D E N T I A L 5 Overview of Transaction Rationale Paycor is a leading cloud HCM software platform with a proven track record of serving larger organizations Comprehensive, AI - powered suite of HCM and payroll solutions with strength in workforce management (WFM), talent management, an
Slide 6: Paychex is a Leading HCM Provider with the Broadest Set of Solutions for SMBs
C O N F I D E N T I A L 6 Paychex is a Leading HCM Provider with the Broadest Set of Solutions for SMBs $5.3B FY24 revenue 42% FY24 adjusted operating margin 4 $90B+ Total addressable market 745k Payroll clients 2.3M+ HRO client worksite employees HR Outsourcing 1 HCM & Payroll Software Retir e me n
Slide 7: Paycor is a Leading HR, Payroll, and Talent Platform, Purpose-Built for Larger Organizations
C O N F I D E N T I A L 7 Paycor is a Leading HR, Payroll, and Talent Platform, Purpose - Built for Larger Organizations Note: Paycor metrics as of FY2024; FYE 06/30 1 49,400 clients from over 30,000 parent customers $655M FY24 revenue Nasdaq: PYCR IPO in 2021 90% FY24 recurring revenue Cincinnati,
Slide 8: Complementary Go-to-market Capabilities
C O N F I D E N T I A L 8 Complementary Go - to - market Capabilities Enhanced ability to win in all customer segments with our complementary products, brand recognition, and go - to - market prowess Significant opportunity to cross - sell Paycor’s premium WFM, talent acquisition, and talent managem
Slide 9: Comprehensive Product Portfolio to Better Serve Customers Across Key Market Segments
C O N F I D E N T I A L 9 Comprehensive Product Portfolio to Better Serve Customers Across Key Market Segments Comprehensive HCM and Payroll Solutions Offering … … Delivering Differentiated Value to Key Market Segments Middle - Market to Enterprise Small & Medium Sized Businesses (SMB) Very Small B
Slide 10: Acquisition Strengthens and Extends our Market Opportunity and Position
C O N F I D E N T I A L 10 Acquisition Strengthens and Extends our Market Opportunity and Position $ 9 0 B + $10 0 B+ Current TAM Combined TAM + HCM and Payroll Software HR Outsourcing, Retirement, and Insurance HCM and Payroll Software HR Outsourcing, Retirement, and Insurance Provides further ex
Slide 11: Acquisition Brings Significant Value to All Paychex Stakeholders
C O N F I D E N T I A L 11 Acquisition Brings Significant Value to All Paychex Stakeholders Creates one of the most comprehensive suites of technology and advisory solutions Combined 790,000+ clients and 13 million employees across the United States Adds over $650 million of highly recurring revenue
Slide 12: Transaction and Financing Overview
C O N F I D E N T I A L 12 Transaction and Financing Overview T r an s a c t io n Overview All - cash acquisition of 100% of Paycor (Nasdaq: PYCR) for $ 22.50 per share, reflecting approximately $4.1 billion enterprise value Represents a premium of ~19% over Paycor's 30 - day VWAP as of the unaffect
Slide 13: Key Takeaways
C O N F I D E N T I A L 13 Key Takeaways Significant value creation for stakeholders of both companies Strong strategic and cultural fit Accelerates our ability to grow and continue to win upmarket Expands our product portfolio to better serve the customers of both companies Committed to maintaining
Slide 14: T I A L A L Copyright 2025,
C O N F I D E N T I A L 14 C O N F I D E N T I A L 14 Copyright 2025, Paychex, Inc. All rights reserved. Confidential and proprietary