Paychex Closes InterPay Deal

Paychex, Inc. (NASDAQ:PAYX) yesterday announced that it has completed the acquisition of InterPay, Inc., a wholly owned subsidiary of FleetBoston Financial Corporation (Fleet). The purchase price totaled $182 million in cash, an increase of $27 million from the $155 million purchase price previously announced. The increase in the price reflects Paychex's request that the parties make a Section 338(h)(10) tax election which will provide Paychex with significantly higher tax deductions. The resulting cash benefit to Paychex will exceed the price increase but neither the increase nor the tax be...