Paychex, Inc. (PAYX.US) is currently negotiating the acquisition of smaller competitor Paycor HCM (PYCR.US).

According to sources familiar with the matter, Paychex, Inc. (PAYX.US) is in deep negotiations to acquire smaller competitor Paycor HCM (PYCR.US) in the payroll processing field. The sources say the deal could be announced as early as this week. However, they also add that nothing is final yet and the negotiations could still fall through. Data shows that as of last Friday's close in the US stock market, Paychex, Inc. has a market value exceeding $50 billion, while Paycor HCM's market value is around $3.3 billion. This deal would merge two major companies in the human resource software and services market. It is a fairly fragmented market. By increasing scale through the deal, they can lower costs when bundling more services to clients in need of payroll management, helping with benefits and onboarding new employees. This potential acquisition would be Paychex, Inc.'s largest deal to date. Paychex, Inc. provides human resource, employee benefits, insurance, and payroll services to over 745,000 clients in the US and Europe. Paycor's cloud software helps small and medium-sized businesses automate and simplify their human capital and payroll management needs - according to their website, over 30,000 clients in all 50 US states are using the software.