Paylocity to Acquire Corporate Spend Startup Airbase for $325M

Acquisition Will Help Paylocity Expand Its Offerings to Include Spend Management

Paylocity, a leading provider of payroll and human capital management (HCM) solutions, has announced that it will acquire Airbase, a corporate spend management startup, for $325 million. The acquisition is expected to close in the first quarter of 2023, subject to customary closing conditions.

Airbase provides a modern, cloud-based spend management platform that helps businesses track, manage, and control their spending. The platform includes features such as expense management, invoice processing, and virtual cards. Airbase has a strong track record of growth and has been recognized as one of the fastest-growing companies in the fintech space.

Acquisition Will Help Paylocity Expand Its Offerings to Include Spend Management

The acquisition of Airbase will help Paylocity expand its offerings to include spend management, a key area of growth for the company. Paylocity's current HCM solutions include payroll, HR, and benefits administration. The addition of spend management will allow Paylocity to offer a more comprehensive suite of solutions to its customers.

Deal Gives Paylocity an Entry Point Into a Large and Growing Market

The corporate spend management market is large and growing, with a total addressable market (TAM) of $25 billion. Airbase is a leader in this market, with a strong customer base and a proven track record of growth. The acquisition of Airbase will give Paylocity an entry point into this large and growing market.

Airbase Will Benefit From Paylocity's Scale and Resources

As part of Paylocity, Airbase will benefit from Paylocity's scale and resources. Paylocity has a strong financial position and a track record of successful acquisitions. Airbase will be able to leverage Paylocity's resources to accelerate its growth and expand its market reach.

Deal Is a Win-Win for Both Companies

The acquisition of Airbase is a win-win for both companies. Paylocity will gain access to a large and growing market, while Airbase will benefit from Paylocity's scale and resources. The acquisition is expected to close in the first quarter of 2023, subject to customary closing conditions.