By Narayan Ammachchi
Global HR management firm ADP acquired South America’s noted HR outsourcing services provider Payroll for an undisclosed price.
The acquisition, analysts say, will expand ADP’s presence in the region. The company has grown rapidly within the US in the past few years.
The financial details of the deal have yet to be disclosed by either company.
Labor markets across Latin America are growing at an unprecedented pace. Businesses in countries such as Chile have had no choice but to hire foreign workers to keep up with the rising demand.
“Latin America represents a multi-billion dollar opportunity, and we see strong momentum in the region with annual growth rates in the high single digits,” stated Gary Bragar, HR Outsourcing Research Director at NelsonHall.
Payroll, which has offices in Chile, Argentina and Peru, is believed to have more than 1,300 clients and employs over 450 associates. The company’s solutions and technologies include core payroll, HR, performance management, recruiting, scheduling, absence management, time and labor management.
Santiago, Payroll’s Chile-based office, offers full outsourcing, software-as-a-service and on-site deployment, among other services. Offices are also present in Buenos Aires and Cordoba in Argentina and Lima, Peru.
Roseland, the New Jersey-based ADP office, stated that it has had a partnership with Payroll since 2009. In Latin America, ADP’s presence is only visible in Brazil, where it has been working with a few subsidiaries.
“Today’s announcement marks an important building block in our global HCM strategy. We currently offer HCM solutions to clients in over 80 countries and this acquisition will further reinforce our capabilities in the fast-growing Latin American market,” said Mark Benjamin, Division President, ADP.
ADP has been rapidly expanding through recent acquisitions. Last year, it acquired Mai Foi Consulting, an Indian human resource and payroll management company and TheRightThing, a Findlay, Ohio-based recruitment outsourcing outfit. These acquisitions, analysts say, are helping ADP grow within the US, as well as overseas. Its largest competitor is Paychex.