US-based HR and payroll software solutions provider Paylocity has agreed to acquire Airbase, which offers a modern finance and spend management software solution, for up to $325m.
Established in 2017, Airbase offers a modern finance and spend management software solution, and has around 300 employees in the US, Canada, India and the Philippines.
Its software solution combines bill pay or accounts payable automation, expense management, corporate cards, and procurement capabilities.
The proposed acquisition is expected to be completed in the first or second quarter of fiscal 2025, subject to customary closing conditions and necessary regulatory approvals.
Paylocity intends to fund the acquisition using borrowings under its revolving credit facility.
Paylocity president and CEO Toby Williams said: “I’m very excited about the acquisition of Airbase, which we believe will allow us to provide companies with an integrated software platform to manage all aspects of their operational spending.
“Many companies use disparate software solutions or manual processes to manage their labour costs and non-labour vendor and procurement spend, and we expect this acquisition will give us the ability to provide a comprehensive solution and modern client experience for managing all spending on a single integrated platform.
“Airbase represents an exciting opportunity to expand our relationship with our nearly 40,000 clients to offer an integrated software platform for running their business operations, while also offering a very compelling value proposition for prospects across our target market.”
Paylocity said the proposed acquisition will expand its suite and deliver incremental integrated value to HR and finance players in managing their spending on a single platform.
Also, the transaction will expand its total addressable market beyond Human Capital Management (HCM) and further into the Office of the CFO.
The integration of Airbase’s finance solutions with Paylocity’s HCM platform is expected to help companies with a differentiated and unified experience across HCM and Finance solutions.
It enables companies to view payroll and non-payroll spending on the same platform.
Also, the integration allows for real-time visibility, faster financial close, improved planning, and stronger financial controls, and serves as a key differentiator, said Paylocity.
