A longtime local payroll company has been snatched up in a deal that will help a national player grow its Richmond book of business.
Experity, one of the larger locally based payroll companies in the area, was acquired earlier this month by Paychex, a publicly traded giant of the industry.
Experity shareholder and general manager Jeff Crook confirmed the deal, the terms of which were not disclosed.
The deal brings an end to a 24-year run for Experity, which was founded under the name Paytime in 1993 by Harry Garmon. Garmon sold the company in 2005 to a group of investors, who changed the name to Experity about five years ago.
Crook said the investor group consists of 18 people, and he is the only one working for Experity. He said the deal with Paychex came about simply because the investors were looking to sell.
“We felt that the timing was right,” Crook said, adding that they liked Paychex’s presence in the Richmond market. The company has more than 100 locations nationwide, including an office on Stillman Parkway, just off West Broad Street next to the new Tesla dealership.
Crook said the kicker in the deal was Experity’s book of business, which consists of around 700 clients that will be transitioned to Paychex in coming months.
Some of Experity’s 12 employees will make the move. Some, including Crook, will move on. Crook said he is starting at Village Bank as a commercial relationship manager in November.
The local payroll industry has seen some action of late.
Earlier this summer, West End bookkeeping firm Steiner Business Solutions acquired Net30, one of its local peers. Checkright, another local player, doubled the size of its offices in a move from West Broad Street to Church Road.
Checkright owner Arch Wallace said he and his 10 employees have been getting inquiries from potential clients regarding the Experity/Paychex deal.
“It’s been a boost for us,” Wallace said. “The phone has been ringing.”
He said Checkright and Dominion Payroll are now the largest locally based payroll companies, while Paychex and ADP are the largest national players with a presence in Richmond.