Heartland Payment Systems has acquired payroll and tax filing products provider Payroll 1 to bolster its ability to add extra merchant services to lure payroll processing clients.

The Birmingham, Mich.-based Payroll 1 helps employers with payroll data entry, tax information and tax returns, online access to human resources data and other employee payment options, Heartland said in a March 2 press release.

Heartland did not disclose financial terms of the deal for independently held Payroll 1. The acquisition advances the company's strategy to grow its payroll-processing segment, Heartland said. Heartland now completes payroll processing for more than 32,500 customers and operates in all 50 U.S. states.

"Integrating Payroll 1 into our Heartland organization allows us to gain operational synergies and materially grow our payroll footprint," Heartland chairman and CEO Robert O. Carr stated in the press release.

Princeton, N.J.-based Heartland said it will retain Payroll 1 employees, who will join the company's hospitality business group led by its president, David Gilbert.

Heartland previously acquired Ovation Payroll in December of 2012 as part of its goal to expand payroll services. The acquisition of Ovation provided mobile technology to Heartland for its efforts to increase mobile payroll capabilities.

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