London South East | The UK's favourite investor portal.

"Paychex to buy rival Paycor in $4.1 bln deal to expand AI-driven HR products

By Priyanka G

January 7, 20258:34 PM GMT Updated 2 days ago

Jan 7 (Reuters) - Paychex (PAYX.O) said on Tuesday it will acquire payroll processing firm Paycor HCM (PYCR.O) for about $4.1 billion in cash, as the HR management firm looks to broaden its artificial intelligence capabilities and consolidate its market share.

... Paycor in November reported first-quarter revenue of $167.5 million, beating analyst's estimate of $162.2 million, according to data compiled by LSEG.

Reporting by Priyanka.G in Bengaluru; Editing by Shilpi Majumdar, Shinjini Ganguli and Alan Barona"

https://www.reuters.com/markets/deals/paychex-buy-payroll-firm-paycor-41-bln-deal-2025-01-07/

So based on its last quarterly results, Paycor has annualised revenue of US$670M.

Which means that it is being acquired on an annualised revenue multiple of c. 6.1, despite the fact that the company is still loss-making.

This illustrates the generous valuations being awarded to quality HCM tech companies in the USA.

In comparison, Grosvenor Technology reported full year revenue of £16.469M. in its year ending 30.4.24, of which £9.443M. was HCM North America revenue.

Applying a revenue multiple of 6.1 to even just the latter figure alone gives a valuation of £57.6M.

And that doesn't include Grosvenor's HCM Rest of World and Access Control revenues.

And nor does it include any value for Safetell.

Moreover, both Grosvenor and Newmark are nicely profitable, with Safetell moving rapidly back towards profitability.

"Paychex to buy rival Paycor in $4.1 bln deal to expand AI-driven HR products

By Priyanka G

January 7, 20258:34 PM GMT Updated 2 days ago

Jan 7 (Reuters) - Paychex (PAYX.O) said on Tuesday it will acquire payroll processing firm Paycor HCM (PYCR.O) for about $4.1 billion in cash, as the HR management firm looks to broaden its artificial intelligence capabilities and consolidate its market share.

Paychex will pay $22.50 for each Paycor share, representing about a 21.4% premium to the stock's last close on Friday, before the news was reported.

"The acquisition of Paycor is highly complementary. It will enhance our capabilities upmarket, broaden our suite of AI-driven HR technology capabilities, and provide new channels for sustained long-term growth," Paychex CEO John Gibson said.

The deal reflects a broader consolidation trend in the payroll and HR industry. In October, payroll firm Automatic Data Processing (ADP.O) acquired management services provider WorkForce Software for around $1.2 billion in cash.

Shares of Paychex rose 2.8% to $139.82, while those of Cincinnati-based Paycor fell about 3% to $22.18.

"The slight pullback in Paycor's shares today provides hints that investors don't believe another firm is likely to swoop in with a higher bid," said Michael Ashley Schulman, Chief Investment Officer at Running Point Capital.

"The deal should provide a boost to both public and private firms in the human-resources software and services market," he added.

The acquisition would be the largest deal to date by Rochester, New York-based Paychex, which has a market value of around $50 billion.

Paycor had a market value of $3.3 billion at the close of trading on Friday. The company serves nearly 50,000 small and medium-sized businesses across the United States, and offers cloud-based payroll software, which helps to automate routine tasks, and mitigate compliance risks.

The deal, expected to close in the first half of 2025, has been approved by both the companies as well as private equity firm Apax Partners and its affiliates, which currently own the majority of Paycor's outstanding shares.

Paycor in November reported first-quarter revenue of $167.5 million, beating analyst's estimate of $162.2 million, according to data compiled by LSEG.

Reporting by Priyanka.G in Bengaluru; Editing by Shilpi Majumdar, Shinjini Ganguli and Alan Barona"

https://www.reuters.com/markets/deals/paychex-buy-payroll-firm-paycor-41-bln-deal-2025-01-07/

Shein's expected London IPO in the coming months should boost the fashion section of the London stock market, and highlight what great growth companies they can be.

Which should help investors to take a 'shein' to ELG ...

"Shein plans London stock market IPO in 2025: report

by Shuang Jing Nov 20, 2024

... Why it matters: The Times reported that the IPO could become one of the largest deals on the London Stock Exchange in the past decade. If Shein does opt for a UK listing, it would provide a much-needed boost to the London market, the media outlet added.

Details: According to the Times, Shein is working with US investment banks Goldman Sachs, JP Morgan, and Morgan Stanley on the potential float.

• Shein's valuation for the IPO is expected to be set at around £50.3 billion. ...

Context: Founded in Nanjing by Chris Xu in 2008, Shein has grown from a low-cost Chinese clothing merchant into a global online fashion giant with sales reaching $50 billion by 2024, while its app generated a total of 199.37 million downloads worldwide in 2024(as of October).

• According to Reuters, Shein is the world’s largest fast fashion retailer with an 18% global market share. ..."

https://technode.com/2024/11/20/shein-plans-london-stock-market-ipo-in-2025-report/

"Shein aims for London IPO by mid-year, sources say

By Helen Reid and Kane Wu

January 9, 202512:26 PM GMT Updated 39 min ago

Summary

• UK officials' visit to China could progress approvals -source

• London IPO could come as early as Easter -source

• Definitive timeline still in flux -source

LONDON/HONG KONG, Jan 9 (Reuters) - Online fast-fashion retailer Shein is aiming to list in London in the first half of the year, according to two sources with direct knowledge of the matter, assuming it gains regulatory approvals for the initial public offering.

The IPO could be completed as early as Easter, which is April 20, one of the people said.

A visit to China by Britain's finance minister Rachel Reeves starting on Saturday, during which she will meet with vice premier He Lifeng to discuss economic and financial cooperation, could help progress the regulatory approvals Shein needs, the source added. ..."

https://www.reuters.com/business/retail-consumer/shein-aims-london-ipo-by-mid-year-sources-say-2025-01-09/

"London stock market shows signs of recovery after challenging 2024

Despite a tough 2024 with limited IPOs, the London Stock Exchange looks set for transformation in 2025 with major listings planned and improved investor confidence.

Written by: Axel Rudolph FSTA | Senior Technical Analyst, London

Signs of market recovery emerge

The London Stock Exchange is showing promising signs of revival after a challenging 2024, with several major listings in preparation. These include Greek firm Metlen, targeting a £5 billion valuation, and Chinese retailer Shein, potentially worth £50 billion.

Trading online data shows only £700 million was raised through eight initial public offerings (IPOs) in 2024, down from £800 million across 11 IPOs in 2023. Moreover, fears about the London market were exacerbated as three times as many firms left the market—via takeovers or relocating to other countries—as arrived. This decline reflects broader market challenges.

The FCA's new listing rules aim to attract more growth-focused businesses. Recent developments include UK equity funds seeing their first net inflows in 42 months.

French media company Vivendi decision to list Canal+ in London signals growing international confidence in the market.

Potential takeover targets emerge

Several UK companies have been identified as potential takeover targets by analysts.

ITV, valued at £2.7 billion, continues to attract takeover speculation, particularly from private equity firms. B&M's upcoming leadership transition makes it another attractive target.

Burberry, now valued at £3.4 billion after leaving the FTSE 100, appears vulnerable to acquisition given its strong brand value.

Larger companies like Diageo (£55 billion) and Whitbread (£5.2 billion) are also being watched for potential corporate activity.

Regulatory reforms support market confidence

Recent FCA reforms have made the market more appealing for trading and investing. These changes aim to attract entrepreneurs and growth companies.

Political stability and improved investor confidence are cited as crucial factors for market recovery. The end of regulatory uncertainty has boosted market sentiment.

Online trading platforms report increased interest in UK equities following these developments.

Market participants are optimistic about London regaining its position as a leading global financial hub. ...

Outlook for 2025

2025 could mark a turning point for the London market, with several significant IPOs planned. Index funds may benefit from this renewed activity.

Improved political stability and regulatory clarity provide a stronger foundation for market growth.

The combination of new listings and reforms could help London reassert its position globally. ..."

https://www.ig.com/uk/trading-strategies/_london-stock-market-shows-signs-of-recovery-after-challenging-2-250102

"London stock market shows signs of recovery after challenging 2024

Despite a tough 2024 with limited IPOs, the London Stock Exchange looks set for transformation in 2025 with major listings planned and improved investor confidence.

Written by: Axel Rudolph FSTA | Senior Technical Analyst, London

Signs of market recovery emerge

The London Stock Exchange is showing promising signs of revival after a challenging 2024, with several major listings in preparation. These include Greek firm Metlen, targeting a £5 billion valuation, and Chinese retailer Shein, potentially worth £50 billion.

Trading online data shows only £700 million was raised through eight initial public offerings (IPOs) in 2024, down from £800 million across 11 IPOs in 2023. Moreover, fears about the London market were exacerbated as three times as many firms left the market—via takeovers or relocating to other countries—as arrived. This decline reflects broader market challenges.

The FCA's new listing rules aim to attract more growth-focused businesses. Recent developments include UK equity funds seeing their first net inflows in 42 months.

French media company Vivendi decision to list Canal+ in London signals growing international confidence in the market.

Potential takeover targets emerge

Several UK companies have been identified as potential takeover targets by analysts.

ITV, valued at £2.7 billion, continues to attract takeover speculation, particularly from private equity firms. B&M's upcoming leadership transition makes it another attractive target.

Burberry, now valued at £3.4 billion after leaving the FTSE 100, appears vulnerable to acquisition given its strong brand value.

Larger companies like Diageo (£55 billion) and Whitbread (£5.2 billion) are also being watched for potential corporate activity.

Regulatory reforms support market confidence

Recent FCA reforms have made the market more appealing for trading and investing. These changes aim to attract entrepreneurs and growth companies.

Political stability and improved investor confidence are cited as crucial factors for market recovery. The end of regulatory uncertainty has boosted market sentiment.

Online trading platforms report increased interest in UK equities following these developments.

Market participants are optimistic about London regaining its position as a leading global financial hub. ...

... Outlook for 2025

2025 could mark a turning point for the London market, with several significant IPOs planned. Index funds may benefit from this renewed activity.

Improved political stability and regulatory clarity provide a stronger foundation for market growth.

The combination of new listings and reforms could help London reassert its position globally. ..."

https://www.ig.com/uk/trading-strategies/_london-stock-market-shows-signs-of-recovery-after-challenging-2-250102

23rd Dec 2024 7:00 am RNS Update on Investee Company

"Lift Global Ventures Plc (AQSE:LFT), an investment company focused on financial media, technology and the energy sector, notes that its investment portfolio company, Trans-Africa Energy Limited ("TAE") who is focused on developing energy infrastructure projects located primarily in Sub-Saharan Africa, the first of which is in Ghana is in discussions with a Southern African state investor in relation to an investment into TAE.

As such the New Redemption Date of 31 December 2024 has been extended to 31 January 2025.

Capitalised terms shall have the same meaning as the RNS dated 25 October 2024, unless otherwise defined.

Related Party Transaction

Roy Kelly, Non-Executive Chairman of the Company, is also a non-executive director of TAE in which the Company has the investment. Mr Kelly has been advising TAE since March 2021 and was appointed as a director of TAE in September 2022. Mr Kelly has no shares or equity in TAE. Zak Mir and Sandy Barblett (as the Independent Directors) of the Company have considered and agreed to the proposal to extend the New Redemption Date. The Independent Directors have therefore decided to treat the extension of the New Redemption Date as a related party transaction under the AQSE Growth Market Rules.

The Independent Directors believe that the New Redemption Date is in the best interests of the Company and that, having exercised reasonable care, skill and diligence, confirm that the related party transaction is fair and reasonable as far as the shareholders of the Company are concerned.

The directors of the Company accept responsibility for the contents of this announcement.

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

Enquiries:

Lift Global Ventures Plc

Zak Mir, CEO +44 (0) 7867 527 659

Oberon Capital (AQSE Corporate Adviser and Broker)

Nick Lovering, Adam Pollock, Mike Seabrook +44 (0) 203 179 5300

For more information please visit: www.liftgv.com "

https://www.lse.co.uk/rns/LFT.PL/update-on-investee-company-its4ujh0kt4py71.html

Happy New Year Dab!

And good luck for 2025. (I won't say 'break a leg' ...)

So NWT ended 2024 at 70p: i.e. 6.67% down on the year, from 75p.

A disappointing s.p. performance, though actually broadly in line with AIM as a whole:-

FTSE AIM All-Share (AXX) Index in 2024: -5.72% (from 763.32 to 719.63)

https://www.londonstockexchange.com/indices/ftse-aim-all-share

NWT's long-standing public listing must help its credibility in winning new business, in 'sensitive' sectors, and overseas.

But Grosvenor Technology would undoubtedly command a much higher valuation if it was spun-out in a US floatation.

That said, NWT's numbers are now starting to do the talking, and a doubled or trebled s.p. here is quite possible with the right news regardless.

"Has AIM now become an irrelevance? Scores of defectors think so

Last updated: 10:44 31 Dec 2024 GMT, First published: 10:43 31 Dec 2024 GMT

Written by: Ian Lyall

As the curtain falls on the year, the exodus from the UK market shows no signs of abating, underscoring deep structural issues that plague the nation’s public markets.

... According to data from accountancy firm UHY Hacker Young, 92 companies exited AIM (Alternative Investment Market) in the year to October, reducing the junior bourse’s membership to fewer than 700 for the first time since 2001.

AIM, once celebrated as a vibrant marketplace for growth companies, has been hobbled by long-standing challenges, including high costs and onerous bureaucracy.

Listing on AIM typically entails initial costs of around £500,000, with annual expenses for regulatory filings, legal fees, and associated costs adding another £200,000. For smaller firms, these figures are prohibitive and increasingly untenable.

Liquidity issues

Compounding the issue of diminished liquidity. Investor preferences have shifted towards passive funds that track major indices, leaving riskier small-cap stocks starved of attention and capital.

For a market that has historically supported the entrepreneurial ecosystem — raising nearly £135 billion for some 4,000 companies since its inception in 1995 — this loss of focus is existential.

AIM is no longer fulfilling its primary role: providing growth capital to ambitious entrepreneurs.

The repercussions are clear. Instead of listing on AIM, a tech-savvy CEO with a promising start-up is likely to court private capital, where funds are abundant, valuations are attractive, and red tape is minimal.

Too little, too late?

For those seeking a liquidity event, the US market offers a far more compelling proposition — deeper liquidity pools, more patient investors, and higher valuations. ..."

https://www.proactiveinvestors.co.uk/companies/news/1063533/has-aim-now-become-an-irrelevance-scores-of-defectors-think-so-1063533.html

Newmark Security: a 'Transformed Transformer' for the 'New Era':-

"Interim results from Newmark Security PLC revealed a business that has undergone a quiet transformation, and which, according to broker Allenby Capital, is primed for take-off."

https://www.proactiveinvestors.co.uk/companies/news/1041475/newmark-security-is-reset-and-primed-for-rapid-growth-1041475.html

"As with most regions, European enterprises are embracing a digital transformation in readiness for the future."

https://www.grosvenortechnology.com/insights/hcm-building-global-momentum/

"Transforming Enterprise Tech: The Convergence of Cloud and Services"

https://newmarksecurity.com/insights/transforming-enterprise-tech-the-convergence-of-cloud-and-services/

"For some time now the HR landscape has been undergoing a dramatic transformation – and it’s a compelling one."

https://gtclocks.com/insights/the-role-of-hcm-in-the-hr-revolution/

"Why HCM Technology Is A Catalyst for Transformation"

https://gtclocks.com/insights/streamlining-workforce-management-with-hcm/

"Transforming HCM with Biometrics: The Future of Workplace Security and Efficiency"

https://newmarksecurity.com/insights/transforming-hcm-with-biometrics-the-future-of-workplace-security-and-efficiency/

"The access control industry is poised to undergo a major transformation as artificial intelligence (AI) and advanced analytics are being increasingly adopted to improve security, efficiency, and effectiveness."

https://www.securityinfowatch.com/access-identity/article/53069444/ai-advanced-analytics-that-bring-value-to-access-control-systems

"Looking ahead to 2024, the world of security is undergoing a transformation. The trends we’ve explored here—integrating systems, strengthening retail security, addressing unique challenges in the UK, embracing automation, and advancing access control—are not just futuristic ideas. They’re the building blocks of a proactive defense against emerging threats."

https://newmarksecurity.com/insights/security-trends-to-watch-in-2024/

"Data Science: The combination of IoT, cloud and mobile technologies is steadily driving digital transformation across the security industry. Balancing protection against the potential of new physical and digital cyber security threats has moved data science into the spotlight, as discussion turns from risk mitigation and prevention to threat prediction and aversion. In 2022, artificial intelligence (AI) and machine learning (ML) become more tightly woven into the fabric of trusted identity solutions across the physical and digital continuum, automating and optimizing performance, accuracy, safety, and security."

https://www.ifsecglobal.com/access-control/seven-trends-to-impact-the-identity-and-access-security-industry-2022/

Latest Share Chat

Member Info for Hedgehog100

Followers

Following

Posts (Last 30 Days)

Posts (All Time)

Last Post

Member Since

Share Chat Post Distribution (Last 30 Days)

Activity Log (Last 30 Days)

Latest Share Chat

Member Info for Hedgehog100

Followers

Following

Posts (Last 30 Days)

Posts (All Time)

Last Post

Member Since

Share Chat Post Distribution (Last 30 Days)

Activity Log (Last 30 Days)

Please enter at least 2 characters

No results found

Search results

Recently viewed

Trending