Cloud-based HR and payroll software solutions company Paylocity has agreed to acquire finance and spend management software provider Airbase, in a deal worth around $325m.
Established in 2017, Airbase offers an all-in-one spend management platform that integrates bill pay and accounts payable automation, expense management, corporate cards, and procurement capabilities.
The San Francisco-based firm’s spend management platform includes several features, including automated invoice processing and purchase order matching. It also offers real-time expense management through web or mobile apps, along with the issuance and management of both physical and virtual corporate cards with spend controls.
Additionally, the platform offers streamlined procurement processes and robust integrations with major enterprise resource planning (ERP) and general ledger systems.
Furthermore, Airbase’s platform supports connected workflows across critical business processes with an intuitive approvals engine.
Through the acquisition of Airbase, the Illinois-based Paylocity aims to enhance its services by allowing HR and finance firms to manage all their financial activities from a unified platform. This move will extend Paylocity’s addressable market beyond human capital management (HCM) and into the broader office of the chief financial officer sector.
Moreover, the integration of Airbase‘s finance solutions with Paylocity’s HCM platform will help the latter offer companies a differentiated and unified experience across HCM and finance solutions.
In addition, the combination will help Paylocity integrate payroll and non-payroll spend management, offering real-time visibility, accelerating financial closing processes, improving planning, and strengthening financial controls.
The acquisition is projected to contribute approximately 1% to Paylocity’s total revenue in FY25.
Paylocity president and CEO Toby Williams said: “Many companies use disparate software solutions or manual processes to manage their labor costs and non-labor vendor and procurement spend, and we expect this acquisition will give us the ability to provide a comprehensive solution and modern client experience for managing all spend on a single integrated platform.
“Airbase represents an exciting opportunity to expand our relationship with our nearly 40,000 clients to offer an integrated software platform for running their business operations, while also offering a very compelling value proposition for prospects across our target market.”
Subject to customary conditions and regulatory approvals, the transaction is anticipated to be completed in Q1 or Q2 FY25.
