Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, April 24, 2020

Article Excerpt

PAYLOCITY HOLDING CORP., $88.43, symbol PCTY on Nasdaq, is a provider of cloud-based payroll and human resources software for small- and medium-sized businesses. It has more than 20,200 clients, each with 100 employees on average. The company’s software lets users track time and labour, benefits, and more. On April 6, 2020, Paylocity announced the acquisition of VidGrid, a leading video platform provider. The company’s products offer video learning with two-way communication. The purchase price has yet to be disclosed. Paylocity has worked with VidGrid for several years on a video-enabled learning management system. VidGrid’s clients include Fox, Duke University, the University of Nebraska and the Mortenson Company. The growing demand for video communication by Paylocity’s clients makes the acquisition very timely. Using videos will become more and more important for businesses as the definition of work expands, including more remote work and other such changes to the traditional office environment. In the quarter ended December 31, 2019, Paylocity’s revenues rose 23.5%, to $132.4 million…