Paylocity to acquire Airbase for $325M, sees dilution

Paylocity announced it has signed a definitive agreement to acquire Airbase, a finance and spend management software solution that combines bill pay / accounts payable automation, expense management, corporate cards and procurement capabilities. Airbase was founded in 2017, is headquartered in San Francisco, and has approximately 300 employees in the United States, Canada, India and the Philippines. The approximately $325M acquisition of Airbase, subject to customary adjustments, will be funded by borrowings under its revolving credit facility and is not expected to impact the company’s ability to execute on the remaining $350M authorization under its share repurchase program. As of June 30, Paylocity had $401.8M of cash and cash equivalents on its balance sheet. Subject to customary closing conditions and necessary regulatory approvals, the transaction is expected to close in the first or second quarter of fiscal 2025. The acquisition of Airbase is expected to represent approximately 1% of total revenue in fiscal 2025 and is expected to dilute adjusted EBITDA margin by approximately 100 basis points in fiscal 2025. Paylocity will update financial guidance in the normal course of business in their first quarter fiscal 2025 earnings release.