Payroll and human resource (HR) outsourcing service provider
) recently announced the acquisition of HR Services Inc., a
provider of comprehensive HR solutions for an undisclosed sum.
Founded in 1993, Ohio-based HR Services specializes in providing
HR Management solutions, tools and even conducting training
sessions. The company's solutions primarily target the small and
medium businesses (SMBs). HR Services' portfolio includes a
software-as-a-service model namely, myStaffingPro. This web-based
application system helps in tracking applicants and recruitment
of the best suited candidates.
Leveraging HR Services' expertise and its myStaffingPro app,
Paychex will be able to offer innovative HR solutions and expand
its served markets. Paychex will add myStaffingPro technology to
its existing resources to boost its HR Services segment.
In Dec 2012, Paychex acquired the expense management business
("ExpenseWire") of Rearden Commerce Inc. for an undisclosed sum.
ExpenseWire is an online solution that helps organizations to
monitor and manage travel expenses of their employees. The
expense management business was added to Paychex' HR Services
We believe that the addition of the applicant tracking system and
expense management solution will attract professional employer
organizations as they will be able to reduce operating costs.
The company's initiatives to boost revenue growth through
acquisitions are encouraging. Also, the improving trend in SMB IT
spending could pave the way for Paychex in the coming quarters.
But it is evident that low hiring in the small and medium
business (SMB) sector (leading to lower checks per client) and
lack of new business wins have come in the way of solid revenue
Currently, Paychex has a Zacks Rank #3 (Hold). Investors may also
consider similar stocks such as
Barrette Business Services
Portfolio Recovery Associates Inc.
Sykes Enterprises Inc.
), all of which have a Zacks Rank #1 (Strong Buy) and are worth
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