BUZZ-Paycor jumps on reported buyout deal by Paychex

Shares of Paycor HCM PYCR.O up 23.2% to $22.85 premarket on potential M&A news

PYCR shares could open at highest levels since Oct 2013, if gains hold.

Paychex PAYX.O in advanced talks to acquire smaller payroll processing rival PYCR, Bloomberg News reported on Sunday, citing people with knowledge

A deal may be announced as soon as this week, said the people, adding nothing has been finalized and talks could still fall through, according to the report

Cincinatti, Ohio-based PYCR's market value stood at ~$3.3 bln as of Fri, per LSEG data. Rochester, New York-based PAYX had market cap of ~$50 bln

Shares of PAYX down 0.3% at $139.20 before the bell

Potential deal would be a surprise, given client overlap and platform duplication, TD Cowen wrote in note, saying views PAYX as being opportunistic "evaluating an undervalued asset"

TD Cowen has 'buy' rating on PYCR with $22 PT

In 2024, PYCR shares lost 14%, while PAYX shares rose ~18%

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))