Apax Global Alpha portfolio company Paycor to be acquired by Paychex

The Apax IX Fund (Apax IX), in which Apax Global Alpha Limited (LON:APAX) is a limited partner, has announced that portfolio company Paycor HCM, Inc. (Nasdaq: PYCR), a leading provider of human capital management (HCM) software, has entered into a definitive agreement with Paychex, Inc. (Nasdaq: PAYX) to be acquired in an all-cash transaction for $22.50 per share. 

Including prior distributions, this transaction is expected to deliver a total gross Multiple on Invested Capital (MOIC) of 3.3x¹ and a gross Internal Rate of Return (“IRR”) of 26%¹ for Apax IX. The transaction values AGA’s look-through investment in Paycor at approximately €38m. This represents an uplift of c.69% to the last Unaffected Valuation² and an uplift of c.€16m in the Net Asset Value (“NAV”) of AGA at 30 September 2024. The transaction is expected to close in H1 2025, subject to customary closing conditions.

Note that these figures relate to AGA’s look-through position of Apax IX’s overall investment in Paycor and are stated before taking into account any closing adjustments, fees, costs, Holdco facilities, and carried interest, and are translated based on the latest exchange rates available where applicable³.

The Apax Funds acquired a majority stake in Paycor in 2018 and took the Company public in 2021. Over the past six years, Apax has partnered closely with Paycor’s leadership team in the transformation of the company – accelerating its top-line growth, expanding it into tier one cities across North America, and building a modern HCM platform for the mid-market.

Apax Global Alpha, whose shares are listed on the London Stock Exchange, provides investors with access to a diversified portfolio of private equity funds advised by Apax as well as a focused portfolio of mostly debt investments. In 2016, AGA made a commitment of c.$350m⁴ to Apax IX.

For more information about the transaction, please visit: https://www.apax.com/news/press-releases/

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