Exhibit 99.1
Paychex to Acquire SurePayroll
Acquisition of online payroll provider further expands Paychex growth opportunity in
small business, Software-as-a-Service market
Acquisition of online payroll provider further expands Paychex growth opportunity in
small business, Software-as-a-Service market
Rochester,
NY (December 9, 2010) – Paychex, Inc. (NASDAQ:PAYX), a leading provider of payroll,
human resource, and benefits outsourcing solutions for small- to medium-sized businesses, today
announced it has entered into an agreement to acquire SurePayroll, Inc., the nation’s leading
provider of Software-as-a-Service (SaaS) payroll processing for small businesses. SurePayroll, a
privately held company founded in 2000, serves approximately 30,000 small businesses with its
easy-to-use, online payroll product.
The acquisition combines SurePayroll’s next-generation, web-based payroll platform with Paychex’s
40 years of payroll experience and world-class customer service, and provides small businesses
access to a SaaS-based technology that allows customers to process payroll in minutes, anytime or
anywhere, using a web browser or iPhoneTM application.
“We are excited to have SurePayroll join the Paychex family,” says Martin Mucci, Paychex president
and CEO. “This acquisition helps Paychex expand further into a new segment of the online market
for small business - a fast-growing part of the market that we believe will continue to thrive.”
Converting businesses that today do their payroll manually to a full-service Paychex payroll
product or a self-service, online solution represents a significant growth opportunity for Paychex,
as there are millions of businesses in the U.S. with fewer than five employees each currently doing
their payroll manually.
“As some small businesses get more comfortable doing business online, and as they demand more
control, convenience, and online product functionality, we believe the ‘new manual’ method of doing
payroll will be the online model Paychex can now offer through SurePayroll,” Mucci says. “We have
the full range of alternatives, depending on the level of interaction a customer wants. For those
who prefer more control, the SurePayroll model provides that. For those customers who want a high
level of personal interaction with a dedicated payroll specialist, we offer that, too. Quality
customer service is a fundamental part of Paychex and SurePayroll, and always will be.”
“We are excited for our customers, channel partners, employees, and small businesses everywhere.
This is a great combination of strengths,” says Michael D. Alter, SurePayroll president.
“SurePayroll is the leader in SaaS-delivered payroll for small business, and Paychex is an
experienced leader in the outsourcing of payroll, human resources, and benefits. With the help of
Paychex’s resources, SurePayroll will continue building upon and accelerate our leadership position
in the self-service, SaaS payroll space.”