Core said the transaction, expected to take place in the first quarter of 2003, is an integral part of the Company’s Strategic Development Plan. The human resources consulting firm expects to reduce its operating expenses per payroll transaction with the acquisition, while utilizing the management currently operating this segment of the company.
“As we move into 2003 we have two priorities: Strategic Corporate Growth through M&A and Revenue. This purchase will allow us to move our payroll processing operations out of Los Angeles and into a market where our labor expenses will be half of what they are now. It will give us a significant competitive advantage by allowing us to substantially undercut the competition while maintaining our current profit margins,” said Core President and Chief Executive Officer Christine Favara in a company press release.