Heartland Payment Systems expands payroll processing business with latest acquisition

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A Princeton-based payment processor has acquired a Michigan company that provides payroll and tax products and services to businesses throughout the nation.Heartland Payment Systems said in a news release that its purchase of privately held Payroll 1 will help it expand its payroll processing segment. The deal will give Heartland’s payroll processing business more than 32,500 customers in all 50 states.

“The acquisition of Payroll 1 reinforces Heartland’s commitment to providing our customers with one of the industry’s broadest sets of payment processing solutions that are effective, transparent and honest,” Heartland Chairman and CEO Robert O. Carr said in a prepared statement. “Integrating Payroll 1 into the Heartland organization allows us to gain operations synergies, materially grow our payroll footprint and look to continue our leadership in exceeding our customers’ requirement of superior services and products.”

Heartland will retain all of Payroll 1’s employees, it said. They will become part of Heartland’s hospitality business group, led by President David Gilbert.

“Payroll 1 is an important acquisition and part of our continued expansion of Heartland’s footprint in the payroll services marketplace,” Gilbert said in a statement. “The Payroll 1 organization brings to us accomplished payroll operators, a seasoned payroll sales team and additional technology that we will be able to utilize in the future.”

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Financial terms of the deal were not disclosed.

“The future of Payroll 1 is now backed by the strength of Heartland’s outstanding products and services, allowing us to better serve our existing customers while enhancing Heartland’s offerings to the marketplace,” Payroll 1 Senior Vice President Elaine Kelly said in a statement. “We are excited to be part of such a dynamic organization, and look forward to adding to the future expansion of Heartland.”

Birmingham, Michigan-based Payroll 1 was founded in 1986.

“Payroll 1’s brand represents a best-of-class payroll provider, and they will merge in nicely with our dedicated service model and rapid expansion plans,” Gilbert said. “We welcome Elaine, Chip Dawson, Peter Hanley and the entire staff into our Heartland family and look forward to continuing our mission together.”

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