1832 ET [Dow Jones]--The payroll space could benefit from consolidation, Raymond James analysts say in a research note. Paychex is reportedly in advanced talks to acquire Paycor, which would be the first piece of notable dealmaking in the SaaS-based payroll space since Ultimate Software's takeout in 2019, the analysts say. Ceridian made a play to modernize its platform with the Daforce acquisition, but there hasn't been much appetite for cloud-based M&A from other service bureaus, the analysts say. They think Paycor would offer Paychex the most synergies among other public payroll companies, given that its average customer size is closest to Paychex but still has some runway for expanding up-market, the analysts say. (dean.seal@wsj.com)

(END) Dow Jones Newswires

January 06, 2025 18:38 ET (23:38 GMT)

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