05:36 PM EDT, 09/04/2024 (MT Newswires) -- Paylocity ( PCTY ) said late Wednesday that it signed a definitive agreement to acquire Airbase, a provider of services that include accounts payable automation, expense management, and procurement capabilities, for about $325 million.

The company said the acquisition would expand its total addressable market to the office of the CFO and provide capabilities for clients to manage all business-related spend on a consolidated platform.

The acquisition will likely represent about 1% of fiscal 2025 revenue and dilute adjusted EBITDA margin by roughly 100 basis points in the financial year, Paylocity ( PCTY ) said.

The company said it plans to fund the acquisition from borrowings under its revolving credit facility. It does not expect the deal to impact its ability to execute the remaining $350 million authorization under its share repurchase program.

As of June 30, Paylocity ( PCTY ) said it had $401.8 million of cash and cash equivalents on its balance sheet.