Ceridian Corp. said it has agreed to buy Toronto-Dominion Bank's payroll services business.
Terms of the deal were not disclosed. Toronto-Dominion's payroll business generated about $23 million in revenue last year.
The bank has more than 13,000 payroll customers. The unit employs about 300 people in Toronto, Montreal, Calgary, Winnipeg, Vancouver, and Halifax. These employees will become part of Ceridian.
"The dynamics of the payroll services market are changing rapidly," said Steve McDonald, executive vice president of corporate and investment banking at the Canadian bank. "We feel that our customers will be well served now and in the future by a global leader like Ceridian, a company that brings vast experience and a reputation for excellent service."
Through a mutual referral agreement, Ceridian will become the bank's chosen supplier for customers who require payroll-related services. Ceridian's customers will also be offered Toronto-Dominion Bank products and services.
Separately, Ceridian is acquiring Comcheq Payroll Services, a unit of Canadian Imperial Bank of Commerce.
Ceridian would become the leading provider of payroll services in Canada, operating as Ceridian Canada Ltd.