(Reuters) - Payroll processor Paychex Inc (PAYX.O) said on Monday it plans to buy Oasis Outsourcing Acquisition Corp for $1.2 billion in cash to expand its human resources outsourcing services and enter new markets.
West Palm Beach, Florida-based Oasis, the biggest privately held U.S. outsourcing firm, serves more than 8,400 clients.
“The combined companies will increase the number of markets served and significantly expand our PEO (professional employer organization) sales organization,” Paychex Chief Executive Officer Martin Mucci said.
Paychex — which plans to fund the Oasis buy through a combination of cash and debt — said the deal, excluding transaction costs, is expected to have minimal impact to its fiscal year 2019 earnings per share.
The company’s shares were up 1.4 percent at $68.20 in early trading.
Reporting by Arunima Banerjee in Bengaluru; Editing by Shounak Dasgupta