Airbase
2023
$325M
Outcome
Highly successful integration providing unified payroll and spend control.
Paylocity
Cloud HCMFounded 1997- HQ today: Schaumburg, Illinois, United States
Reviewed by Swet Parvadiya
Company data updated: November 2026
Acquisitions
Paylocity Acquisitions
4
Major Deals Covered
$325M
Disclosed Deal Value
What are Paylocity's biggest acquisitions?
Paylocity's largest disclosed acquisition here is Airbase for $325M in 2023. This page covers 4 major deals from 2017 to 2023, each with its price where disclosed and the reason behind it.
- Major deals covered
- 4
- Largest deal
- Airbase ($325M)
- First deal
- 2017
- Most recent
- 2023
| Company | Year | Price | Purpose |
|---|---|---|---|
| Airbase | 2023 | Undisclosed | — |
| Blue Marble Payroll | 2021 | Undisclosed | — |
| VidGrid | 2019 | Undisclosed | — |
| Trace | 2017 | Undisclosed | — |
- What companies has Paylocity bought?
- Major acquisitions by Paylocity documented here include Airbase (2023), Blue Marble Payroll (2021), VidGrid (2019) and Trace (2017).
- What is Paylocity's most recent acquisition?
- The most recent Paylocity acquisition documented here is Airbase, in 2023, for $325M.
Blue Marble Payroll
2021
Outcome
Integrated into Paylocity's global expansion framework.
VidGrid
2019
Outcome
Powering Paylocity's video-based learning and collaboration modules.
Trace
2017
Outcome
Integrated into Paylocity's survey and employee experience suite.
Paylocity's Growth & Acquisition Strategy
Expanding upmarket into 1,000+ employee enterprises, cross-selling Airbase spend management, integrating generative AI copilots, and broadening global payroll partnerships.
How Paylocity Makes Money
Paylocity operates a high-margin recurring SaaS business model, generating revenue through per-employee-per-month (PEPM) subscription fees across core payroll and HR modules, Airbase spend management and corporate cards, interest income on client escrow funds, and professional implementation services.
Paylocity Acquisitions FAQ
What makes Paylocity's cloud HCM and payroll platform unique in the modern enterprise software market?
Paylocity distinguishes itself by combining core payroll and HR administration with an intuitive, consumer-grade mobile-first user experience, the built-in Community social collaboration hub, and advanced spend management capabilities acquired via Airbase, ensuring high employee engagement and streamlined enterprise back-office workflows.
How does Paylocity generate its recurring revenue and maintain strong financial growth?
Paylocity generates revenue primarily through SaaS subscription fees based on employee headcount, ancillary module adoption (such as talent acquisition, time and attendance, and spend management), and interest income earned on client funds held prior to tax and payroll disbursement, supporting sustained multi-year revenue expansion.
What role did Steve Sarowitz play in the founding and scaling of Paylocity?
Steve Sarowitz founded Paylocity in 1997 in Schaumburg, Illinois, serving as CEO until 2017 and establishing a culture centered on exceptional customer service, dedicated support pods, and continuous technological innovation that propelled the company into a publicly traded S&P mid-cap leader.
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Explore Paylocity
Core profile pages, founders and related research hubs for this company.