Back in 1999, former Intuit employees -- René Lacerte and Martin Gates -- saw an opportunity in building an affordable, web-based payroll system for small business. So, they started a company called PayCycle.
It was certainly prescient. In fact, this week PayCycle sold to Intuit (NASDAQ: INTU) for $170 million.
Besides having a strong on-demand offering, PayCycle also has a large customer base, which comes to roughly 85,000 small businesses. No doubt, this will be a lucrative cross-sell opportunity for Intuit. At the same time, PayCycle will help deal with the intense competitive environment, which includes players like ADP (NYSE: N) and Paychex (NASDAQ: PAYX).
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