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Paychex (PAYX) to Gain From Flock Acquisition: Here's How

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Paychex, Inc.(PAYX - Free Report) recently announced that it has completed the purchase of Flock, a San Francisco-based provider of benefits enrollment and administration, onboarding, and human resources information system. Financial terms of the deal have been kept under wraps.

The acquisition brings Flock’s benefits administration software, which is specialized in boosting innovation and delivering a suite of digital services, to Paychex’s portfolio. All Flock employees will be joining Paychex.

Paychex’s human resource (“HR”) software, coupled with the benefits administration functionality of Flock, should help employers increase efficiency and deal with the various HR challenges that have come up amid this pandemic situation.

Martin Mucci, president and CEO at Paychex, stated, "Paychex provides HR services to more than 1.7 million worksite employees and is among the 30 largest insurance agencies in the U.S. The combination of Paychex's full-service HR and benefits capabilities and Flock's innovative platform will position us for continued growth and expansion in the marketplace."

Considering the present competitive employment scenario and the increasing demand for an efficient benefits administration facility aimed at driving efficiency and automating tasks, the latest deal seems to be a strategic move on Paychex’s part to expand its HR services business and strengthen its competitive position against names like Automatic Data Processing, Inc. (ADP - Free Report) , Barrett Business Services, Inc. (BBSI - Free Report) and TriNet Group, Inc. (TNET - Free Report) .