Beginning in early 2014, a Paychex Inc. joint venture with Brazil-based Semco Partners is to result in the firm offering payroll and human resources services to small businesses in Brazil.
Penfield-based Paychex and Sao Paulo-based Semco Partners announced the agreement Tuesday. Financial details were not disclosed. Semco Partners is a portfolio management and investment company.
Paychex president and CEO Martin Mucci said the company’s decision to expand its payroll and human resources services business into Brazil is part of its growth strategy.
“(Brazil) has a vibrant market of approximately 5 million small businesses that account for about 40 percent of the wages paid in Brazil,” Mucci said. “Also, recent and upcoming regulatory changes there increase the opportunity for outsourcing payroll and other HR services.”
Partnering with Semco, which has helped other U.S.-based businesses enter the Brazilian market, means Paychex begins with valuable knowledge of the country, Mucci said.
Paychex plans to begin operations in Sao Paulo, Brazil, in the first quarter 2014. The joint venture in Brazil represents Paychex’s second international operation. In spring 2004, Paychex expanded into Germany, where the company serves more than 2,300 clients.
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