Shares of Paycor HCM, Inc. (PYCR) plunged 5.07% in the pre-market session on Tuesday, following the announcement of an agreement for the company to be acquired by Paychex, Inc. (PAYX) in an all-cash transaction valued at approximately $4.1 billion.

Under the terms of the deal, Paychex will acquire all outstanding shares of Paycor for $22.50 per share in cash, representing a premium of around 19% over Paycor's 30-day volume-weighted average trading price prior to the announcement.

The acquisition aims to create one of the most comprehensive suites of human capital management (HCM) solutions in the industry for organizations of all sizes. It will extend Paychex's upmarket position and expand its suite of AI-driven HR technology and advisory solutions.