Apax portfolio firm Paycor to be acquired by Paychex

Apax Global Alpha announced on Wednesday that Paycor HCM, a portfolio company of the Apax IX Fund, is set to be acquired by Paychex in an all-cash transaction valued at $22.50 per share.

The FTSE 250 company said the deal, announced by Apax IX, in which Apax Global Alpha is a limited partner, was expected to close in the first half of 2025, subject to customary conditions.

It said the acquisition was anticipated to generate a total gross multiple on invested capital of 3.3x, and a gross internal rate of return of 26% for Apax IX.

For AGA, the transaction valued its look-through investment in Paycor at about €38m, representing a 69% uplift to the last unaffected valuation and an increase of €16m in AGA’s net asset value as of 30 September.

Apax IX initially acquired a majority stake in Paycor in 2018, and took the company public in 2021.

During its ownership, Apax said it collaborated with Paycor’s leadership to accelerate growth, expand operations into major North American markets, and develop a human capital management platform for the mid-market sector.

Apax Global Alpha is an entity established to provide investors with exposure to a portfolio of private equity funds advised by Apax, alongside a portfolio of predominantly debt investments.

At 1132 GMT, shares in Apax Global Alpha were up 0.43% at 139.4p.

Reporting by Josh White for Sharecast.com.