Quarterly report [Sections 13 or 15(d)]

Business Combinations (Tables)

v3.25.2
Business Combinations (Tables)
3 Months Ended
Aug. 31, 2025
Business Combination [Abstract]  
Summary of Purchase Price Allocation

Purchase Price Allocation

 

The purchase price allocation as of the acquisition date is subject to change as additional information about the fair values of assets acquired and liabilities assumed becomes available. These adjustments will be finalized no later than one year from the acquisition date.

 

During the three months ended August 31, 2025, the Company adjusted its purchase price allocation, which increased goodwill $5.8 million, primarily resulting from the write-down of a building by $4.9 million, net of deferred taxes of $1.9 million as a result of an updated valuation. The impact of these changes on previously reported earnings was not material.

In millions

 

 

 

 

Total purchase price

 

$

 

4,085.7

 

Assets Acquired

 

 

 

 

Cash and cash equivalents

 

$

 

168.8

 

Restricted cash

 

 

 

0.0

 

Interest receivable

 

 

 

0.7

 

Accounts receivable

 

 

 

26.5

 

Prepaid income taxes

 

 

 

1.0

 

Prepaid expenses and other current assets

 

 

 

29.3

 

Funds held for clients

 

 

 

1,288.2

 

Property and equipment

 

 

 

27.6

 

Operating lease right-of-use assets

 

 

 

9.1

 

Intangible assets (new fair value)

 

 

 

1,776.5

 

Other long-term assets

 

 

 

1.9

 

Total assets

 

$

 

3,329.6

 

Liabilities Assumed

 

 

 

 

Current liabilities

 

$

 

136.3

 

Client funds obligation

 

 

 

1,288.9

 

Deferred income taxes

 

 

 

342.4

 

Other long-term liabilities

 

 

 

69.7

 

Total Liabilities

 

$

 

1,837.3

 

Fair value of purchase consideration

 

 

 

4,085.7

 

Less: fair value of net assets

 

 

 

1,492.3

 

Goodwill

 

$

 

2,593.4

 

Summary of Unaudited Pro Forma Financial Information

The following unaudited pro forma consolidated results of operations are provided for illustrative purposes only and present the estimated unaudited pro forma combined results of Paychex and Paycor for three months ended August 31, 2024, as if the acquisition had occurred on June 1, 2023:

 

 

Three months ended

 

In millions

 

August 31, 2024

 

Revenues

 

$

 

1,486.0

 

Net income

 

$

 

345.6